What is Shiba Inu (SHIB)?

Shiba Inu, launched in August 2020 by an anonymous figure known as Ryoshi, is the first cryptocurrency entirely managed by its community, aiming to set a new standard for decentralisation. Unlike Bitcoin, which operates within a largely centralised world, Shiba Inu seeks to prove that a decentralised model can thrive without central leadership or funding.

According to Shiba Inu’s "Woofpaper," cryptocurrencies that lose their independence are at risk of a fragile existence. The Shiba Inu community, called the Shib Army, started with nothing and is testing whether true decentralisation is possible without a centralised team or leadership.

The native token, SHIB, was launched with half of its total supply sent to Ethereum co-founder Vitalik Buterin. The other half was locked for liquidity on Uniswap, a decentralised finance platform. In May 2021, Buterin burned 90% of his SHIB tokens, then worth about $6.7 billion, and donated the remaining 10% to an India COVID-19 relief fund created by Polygon founder Sandeep Nailwal. The Shiba Inu developers had not anticipated this move, and the relief fund is now tasked with using the donations in a way that minimises impact on SHIB’s price.

How Does Shiba Inu (SHIB) Work?

Shiba Inu operates as an ERC-20 token on the Ethereum blockchain, allowing it to utilise smart contracts for decentralised finance (DeFi) products. Dubbed the "Dogecoin Killer," Shiba Inu aims to break into the DeFi space through its decentralised exchange, ShibaSwap, and an artist incubator. The incubator will allow artists to auction non-fungible tokens (NFTs) using Ethereum’s network, creating a decentralised NFT market.

Once ShibaSwap is live, users will be able to stake their SHIB tokens to earn BONES, another asset touted as a "Dogecoin Killer." According to Shiba Inu’s website, BONE will elevate DeFi to new heights, with more details on acquiring it to be announced later.

The only way to mine BONES will be by staking SHIB on ShibaSwap, which will also offer LEASH, a third flagship asset with a total supply of just 100,000 coins, available on Uniswap. Shiba Inu plans to expand into real-world applications, including launching an NFT project and Shiba-themed merchandise, known as ShibaSwag.

The History of Shiba Inu (SHIB)

Shiba Inu was created by the pseudonymous Ryoshi in August 2020. Little is known about Ryoshi aside from their Twitter and Medium accounts. In a May 2021 Medium post, Ryoshi described themselves as "nobody" and "replaceable," emphasising that their identity is insignificant and that the Shiba Inu project is community-driven.Despite the anonymity, there has been speculation about Ryoshi’s identity. A Reddit user noted that Ryoshi once posted a photo of Ethereum co-founder Vitalik Buterin in Japan with Karl Floersch, a blockchain developer focused on Ethereum. Given that Buterin received 50% of SHIB’s supply, some believe the Ethereum team may be involved in Shiba Inu.

In its brief history, Shiba Inu has gained a substantial following. The community boasts over 480,000 members, with more than 70,000 Twitter followers and 3,000 Medium subscribers.

What Makes Shiba Inu (SHIB) Unique?

Shiba Inu is unique because it is entirely driven by its community, which believes strongly in decentralisation. According to its Woofpaper, Shiba Inu aims to build something superior to what any centralised team could achieve through "collective decentralisation."

What began as an experiment in decentralised community building has grown into a project with no funding, centralised team, or direct leadership, driven entirely by its community.

Shiba Inu has also initiated a community effort using Amazon Smile to raise funds for the Shiba Inu Rescue Association, helping new owners care for these intelligent but sometimes challenging dogs.

Shiba Inu is also inviting dog-themed artists from around the world to join its artist incubator, aiming to promote the Shiba Inu movement and push the project further into the NFT market.

What Gives Shiba Inu (SHIB) Value?

Shiba Inu’s value is bolstered by its decentralised nature and several key factors. Ryoshi locked 50% of SHIB’s supply on Uniswap to ensure liquidity and sent the remaining 50% to Vitalik Buterin, highlighting the coin’s vulnerability and potential for growth as long as Buterin did not "rug" the project.

Shiba Inu is built on Ethereum, which provides a strong foundation for ShibaSwap. Users can buy, HODL, sell, and trade SHIB, potentially earning rewards that outperform other staking platforms.

As Ethereum transitions to ETH 2.0 and moves to a Proof of Stake consensus, ShibaSwap could become one of the most popular and highest-volume decentralised exchanges, focusing on ERC-20 tokens and benefiting from cheaper and faster transactions.