On Wednesday, all the largest cryptocurrencies in the world lost value, from Bitcoin and Ethereum to Ripple and Dogecoin. But one currency continued to rise, defying expectations and making a name for itself as the next big meme coin.
The Shiba Inu coin has gained another 30%, which means it has now increased by 60.000.000 percent in the past year. At the moment, he has one quotation of approximately $ 0,000069, with a market capitalization of approximately $ 38,5 billion, more than companies such as HP and Nokia. But what is behind its success? Here's what you need to know.
What is the Shiba Inu coin?
On its website, Shiba Inu Coin calls itself "an experiment in building decentralized spontaneous communities". It launched in August 2020 and is listed on its own decentralized exchange called ShibaSwap.
According to Binance, the total supply of Shiba tokens is one quadrillion (1.000.000.000.000.000) and the current circulating supply is 100%. The Shiba Token website claims that 50% of the total supply was blocked on Uniswap, a decentralized financial protocol that facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain.
The remaining 50% was burned by Ethereum co-founder Vitalik Buterin. “Everyone has to buy on the open market, ensuring fair and complete distribution where developers don't have team tokens that they can download to the community,” the website states.
However, according to Binance, “the best no. 1, no. 2 and n. 5 respectively own 50,5%, 7% and 3% of the total offer ". The mascot of the coin is the shiba inu dog, the same breed that represents the Dogecoin. He also nicknamed himself the "Dogecoin Killer".
Why is Shiba Inu on the rise?
Some investors find coins like Shiba Inu attractive, as they offer the opportunity for quick earnings. However, you can also lose all your money in just over an instant.
Jonathan Cheesman, head of institutional sales at cryptocurrency exchange FTX, told Bloomburg about the rise of Shiba Inu Coin: “Memes have value and have been an investable thesis in 2021. Low-dollar tokens are attractive. for retail sale ". The market was also buoyed by rumors that it could soon be added to the popular Robinhood trading platform.
More than 300.000 people have signed a petition on Change.org demanding its addition, and while Robinhood has yet to respond, its CEO Vladimir Tenev said earlier last week that the platform will "carefully consider whether it can add new coins in a a safe way for customers and in line with regulatory requirements ".
It doesn't take long to move the Shiba Inu market - earlier this month its price went up simply because Elon Musk tweeted a photo of his pup. Musk revealed that he doesn't own any Shiba Inu coins, but he does own Bitcoin, Ethereum, and Dogecoin.