The growth and evolution of meme coins in the cryptocurrency world show no signs of slowing down. This phenomenon can be attributed to several factors, with the primary driver being the support of a strong community rather than intrinsic utility. A prime example is Dogecoin, which gained momentum thanks to Elon Musk’s endorsements, often sparked by his tweets about dogs and cryptocurrencies.
In this article, we’ll explore whether the SHIB coin has a specific purpose, examine the story behind Shiba Inu’s total supply, and compare Shiba Inu with Dogecoin.
What is SHIB Coin?
The Shiba Inu, a Japanese dog breed, serves as the inspiration behind Dogecoin’s symbol. The Shiba Inu ecosystem is built on the principles outlined in the “woof paper,” the canine equivalent of a cryptocurrency project’s white paper. SHIB is an Ethereum-based ERC-20 token, chosen for its robust, secure, and well-established platform that supports true decentralization.
SHIB’s popularity and success largely stem from its massive community of supporters, known as the ShibArmy, and influential online figures who help drive the price. The official Twitter account for the cryptocurrency boasts 2.2 million followers—more than other top coins like Solana, Cardano, or even Ethereum. In 2021, SHIB’s price surged by over 27,000,000% from January to October.
For a long time, SHIB was seen as a pump-and-dump cryptocurrency, mainly because its real-world utility was difficult to discern. However, the project’s website describes Shiba as “A Decentralized Meme Token that Evolved into a Vibrant Ecosystem,” resonating with the crypto community through the widespread popularity of the Shiba Inu breed.
Who Created Shiba Inu Coin?
The SHIB token was created in 2020 by an anonymous person or group known as Ryoshi, continuing the trend of dog-themed meme cryptocurrencies. By 2021, it had become Dogecoin’s main rival, alongside coins like Floki Inu, Akita Inu, and Dogelon Mars.
Between its inception in August 2020 and its peak in October 2021, SHIB’s value skyrocketed from $0.000000000056 to an all-time high of $0.00008616, representing a staggering 150 million percent increase.
A pivotal moment in SHIB’s history came when Ethereum co-founder Vitalik Buterin donated $1 billion worth of SHIB to combat COVID-19 in India, marking the largest donation of its kind.
How Many Shiba Inu Coins Are There?
The Shiba Inu ecosystem is distinguished by its total supply. At its inception, one quadrillion (1 followed by 15 zeros) SHIB tokens were minted—the largest amount of coins ever generated in the crypto space.
Upon launch, 50% of Shiba Inu’s supply was locked in the decentralized exchange Uniswap, allowing users to perform automated transactions between cryptocurrency tokens on the Ethereum blockchain and earn rewards through smart contracts. This system, known as an automated market maker protocol (AMM), incentivizes users to become liquidity providers in exchange for transaction fees and free tokens.
The remaining half of SHIB’s supply was sent to Vitalik Buterin, presumably with the hope that he would lock them away indefinitely. This move drew criticism within the crypto community: Why transfer such a vast amount to a single individual, and what would he do with it?
Buterin eased concerns by donating half of his holdings to the India COVID-19 Relief Fund. However, holding 45% of the total SHIB supply raised questions about the coin’s true decentralization and its potential for future volatility.
In response to widespread objections, Buterin burned 410.24 trillion SHIB (worth approximately $6.6 billion), effectively removing 40% of the total supply from circulation.
How Many Shiba Inu Coins Have Been Burned?
About 41% of SHIB coins have been burned, meaning they are permanently removed from circulation. This includes the significant amount sent to Buterin, who then burned most of them as previously mentioned.
Shiba Inu isn’t the only dog-themed cryptocurrency sent to Buterin. Others, like Dogelon (ELON) and Akita Inu (AKITA), were also sent to his wallet in an attempt to gain publicity through association with such a prominent figure.
The decision to send 50% of the coins to Buterin was risky and somewhat contrary to the principles of blockchain decentralization. However, the developers justified it by stating, “There is no greatness without a vulnerable point, and as long as VB doesn’t rug us, then Shiba will grow and survive.”
Does the Shiba Coin Have a Purpose?
Meme coins are primarily driven by community support, which largely determines their development and price. While some may question the utility of such a model, many within the community view it as the essence of true decentralization, where the coin’s future is shaped by its supporters rather than a central authority.
The Shiba token’s official website describes the project as an experiment in decentralized, spontaneous community building, aimed at empowering ordinary people. This concept echoes the rise of meme stocks in early 2021, when GameStop (GME) demonstrated the power of collective action and decentralization.
What Is the Shiba Coin Used For?
The Shiba Inu ecosystem is powered by several tokens that support its operations:
•Shiba Inu (SHIB): The main currency of the project, with an initial total supply of 1 quadrillion tokens, SHIB can be exchanged with any ERC-20 token within the Ethereum ecosystem.
•Leash (LEASH): Originally a rebase token tied to Dogecoin’s price, LEASH has a total supply of 107,646 tokens. The rebase function was later disabled, reverting LEASH to a standard ERC-20 token.
•Bone (BONE): Available exclusively on ShibaSwap, BONE has a total supply of 250 million tokens and serves as a governance token, allowing the ShibArmy to vote on proposals. The more BONE a user holds, the more influence they have in decision-making.
The Shiba Inu ecosystem also includes the following components:
•ShibaSwap: A decentralized exchange (DEX) for decentralized finance (DeFi), where users can trade cryptocurrencies without the limitations of centralized platforms.
•Shiba Inu Incubator: Previously known as the Artist Incubator, this platform allows the ShibArmy’s creative talents to showcase and develop their artwork.
•Shiboshis: These are 10,000 unique non-fungible tokens (NFTs) created within the Shiba Inu ecosystem and permanently recorded on the Ethereum blockchain. Each Shiboshi has distinctive traits, making them collectible and tradeable on platforms like OpenSea and ShibaSwap without fees.
