Shiba Inu
00.00 | Instrument:SHIBA INU |
What is Shiba Inu?
The Shiba Inu coin (SHIB) was launched in August 2020 by an anonymous developer(s) known as Ryoshi. In the crypto world, SHIB is classified as a ‘meme coin’, a reference to cryptocurrencies that have been inspired by viral internet memes, jokes, or trends. Dogecoin, for example, was the first-ever meme coin, and Shiba Inu was inspired by the face of the popular trending Japanese Shiba Inu dog. While both Dogecoin and Shiba Inu are meme coins, the latter was created to essentially be the Ethereum-compatible alternative of the former. The Shiba Inu ecosystem was designed to be propelled and maintained by its community. This alone has fuelled demand and enthusiasm for the SHIB coin.
Already, the Shiba Inu community has rolled out a decentralized exchange (ShibaSwap); Shiba Search, a SHIB-inspired search engine designed to burn the coin to gradually reduce its supply; as well as a platform that will run on SHIB to support Decentralized Finance (DeFi) applications and an NFT marketplace. The Shib Army, as the Shiba Inu community is popularly referred to, is committed to making a valuable ecosystem that will inspire the demand of the meme coin.
But Shiba Inu is likely to face some heavy headwinds. At inception, the coin started out with a huge supply of 1 quadrillion. The coin also has a history against it. After a blockbuster and truly abnormal performance in 2021, it is expected that it will face the fate that awaits most meme coins – inevitable collapse. Regulation is still an issue in the crypto world, as is the unpredictable social media hype. As a meme coin, Shiba Inu does not have real utility and does not exactly stand out in a crowded space. While this does not matter with most meme coins, it leaves SHIB at the mercy of many unpredictable factors. In a pool of many coins vying for visibility, it is possible that the best days of SHIB may well be truly behind it.
Shiba Inu Coin History
SHIB launched with a price of around $0.0000000001 in August 2020. That’s plenty of zeros, but most meme coins start out with no real value to them. The token then embarked on a journey of eliminating the zeros after the decimal point. SHIB hit a monumental peak in May 2021 when it printed a high of $0.000035. It would tumble to lows of below $0.000006 by July 2021. But the coin picked up momentum in late September 2021 and posted an all-time high above $0.00008 by late October 2021. It has since retreated from those heights to currently trade around $0.00002 as of January 2022.
While the zeros may seem confusing, SHIB has posted a return of about 50,000,000% for early investors that rode it from its early beginnings to its recent peaks. That’s a truly life-changing return, but it shows what is possible in the crazy world of meme coins.
Factors Influencing the Price of Shiba Inu
Bitcoin Price Momentum
Despite the emergence of thousands of crypto coins and tokens, Bitcoin (the first-ever cryptocurrency) still provides the price directional cue for the entire digital assets world. Altcoins, and particularly meme coins such as SHIB, tend to overextend the momentum moves of Bitcoin. If Bitcoin moves upwards, SHIB will tend to post even bigger upwards moves, and vice versa.
Psychological Shiba Inu Milestones
As a meme coin, Shiba Inu is generally driven by trends and hype. To generate hype, the Shib Army has tended to take advantage of important Shibatoken milestones to drive sharp demand for the digital coin. These milestones include technical price points as well as the number of SHIB holders. The total number of SHIB holders is approaching 1.2 million as of January 2022, and the price of the coin tends to gain sharp upward momentum every time a round number is announced. Similarly, SHIB price also tends to rise sharply every time a ‘zero’ is eliminated in its price.
News and Media
The price of the SHIB coin is very sensitive to visibility. Positive news and announcements that have contributed to big price moves in the coin’s history include listing on new exchanges, tech developments such as ShibaSwap, upgrades on its blockchain, mentions on mainstream media, as well as social media backing by influential personalities such as Elon Musk. The coin can also suffer during negative visibility, such as regulatory crackdowns in different jurisdictions.
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