Introducing Shiba Inu Cryptocurrency
What is Shiba Inu Cryptocurrency?
Introducing Shiba Inu Cryptocurreny: Shiba Inu was created in August 2020 by an anonymous developer named Ryoshi.
Although Shiba Inu is branded as the quote Dogecoin killer.
Ryoshi explained in his first medium post that the project is essentially an experiment in community governance and decentralization.
Ryoshi came up with the idea for Shiba Inu with an anonymous friend who he’d met at the Ethereum Devcon conference in japan in 2019.
This anonymous friend is the one who created the SHIB token smart contract on Ethereum and also provided 10 Eth as liquidity for an Eth SHIB trading pair on the uni-swap decentralized exchange.
According to Ryoshi this anonymous friend is a quote successful businessman so 10 eth is nothing for him.
After the initial hype died down Shiba Inu went into hibernation until February this year when Ryoshi posted another article on medium.
In it he explained that Shiba Inu’s return is because with the resurgence of doge Shib has caught fire and is threatening to turn over the entire market.
The final sentence in the post also stuck out for me and it reads quote I don’t like centralized exchanges.
Often times they destroy community projects by price suppressions I do not endorse any and only encourage you to use uni-swap and DEX.
Shiba Inu’s first news mention came in mid-march and it was about a 300 price pump caused by Elon Musk’s tweet that he would be getting a Shiba Inu dog.
About one month later the Shiba Inu community released the first version of their white paper which is of course called the woof paper.
Shib’s similarities to doge caused it and other dog themed tokens to dominate the headlines in May especially when Vitalik announced his massive Shib burn and donation.
The Shiba Inu community conveniently released the second version of the project’s woof paper about a week ago which means my explanation of how it works is up to date.
As Shiba Inu’s own website explains Shib is no longer just a meme token.
It is a part of a larger ecosystem being built by the Shiba Inu community.
Most of this ecosystem centers around DeFi specifically the Shiba Swap decentralized exchange whose code is currently being audited by Certig.
Like some other DEXes Shiba Swap’s launch will begin with a two-week liquidity event which will incentivize liquidity providers to move their LP tokens from uni-swap and Sushi swap to Shiba Swap.
Now for those unfamiliar liquidity provider tokens or LP tokens are given to users who give two cryptocurrencies to a decentralized exchange to earn fees for that trading pair.
For example, if you provide eth and USDC liquidity to the eth USDC uni-swap pool you will receive an equivalent amount of LP tokens.
The main takeaway here is that these LP tokens represent the eth and USDC you locked in the uni-swap pool.
Each LP token type is fungible i.e identical and can easily be traded with other users.
By incentivizing uni-swap and sushi swap LPs to move their LP tokens to Shiba Swap it becomes possible to do something called a vampire attack.
Wherein all the liquidity on a DEX is swapped to another.
In plain english it makes it possible to take most of the cryptocurrency trading pair value from one DEX and move it to another DEX.
Shiba Inu BONE Cryptocurrency Tokenomics
It’s clear that this is exactly what the Shiba Inu community is looking to do and they’re hoping to lure dog-minded LP s to their DEXs with bones literally.
Bone is an ERC20 token on Ethereum and a part of Shiba Inu’s upcoming ecosystem.
Bone is not yet in circulation.
The Bone you’ll find on coin market cap and coin gecko is related to a different dog project.
Shiba Inu’s bone will be given as reward to stakers and liquidity providers on the Shiba swap DEX and it will also give governance rights to its holders where one bone equals one vote.
Bone can also be staked to earn more bone and providing liquidity for the bone eth pair will allow bone ease LPs to earn 0.1 percent of all DAI and USDT swap transactions.
An interesting setup to say the least.
Bone will have a maximum supply of 250 million and a predetermined amount of bone will be generated per Ethereum block until it reaches its maximum supply in a few years.
Note that it’s extremely aggressive during Shiba swap’s two-week liquidity event to incentivize LPs to migrate their LP tokens from other DEXes.
A small portion of the bone per block will be allocated to a multi-signature development wallet to ensure the long-term sustainability of the project.
On that note it’s worth pointing out that the first version of Shiba Inu’s woof paper notes that centralized exchanges will not be allowed to earn any bone rewards from Shiba swap whereas the second version specifies that quote unaffiliated centralized exchanges will be barred from earning bone rewards.
What Shiba Inu LEASH Cryptocurrency Tokenomics
This is one of the few changes between the two wolf papers with most relating to the bone rewards earned by stakers and LPs which deal in not just bone and shib but another token called Leash.
Leash is another ERC20 token on Ethereum and also part of Shiba Inu’s upcoming ecosystem.
Leash is in circulation as of April and it was initially designed to quote tame doge by rebasing to 1000x the price of Doge at 630 UTC every day.
Now as a simple example if Doge is worth one cent at that time leash will rebase to ten dollars.
Ryoshi ‘s reasoning behind leash is to quote offer a synth to hedge the price of Doge.
Anyways leash is no longer a rebase token it has a maximum supply just north of 107 000 leash all of which is in circulation.
This low supply is why leash has such a high dollar value in case you didn’t know.
While leash has no use case per se it can be staked to earn bone and those who provide liquidity for the leash eth pair will earn 0.1 percent of all wrapped BTC and USDC swap transactions.
This brings us to our third and last token and that’s Shib.
Shiba Inu SHIB Cryptocurrency Tokenomics
Shib is an ERC20 token on Ethereum and the flagship token of the Shiba Inu ecosystem.
Shib had an initial supply of one quadrillion.
Fifty percent of this supply went to the initial Eth/Shib pool on uni-swap and the remainder was sent to Ethereum founder Vitalik buterin called wallet address by Shiba Inu’s founder.
The reason why Ryoshi did this is not entirely clear, but it was likely for marketing purposes since many other cryptocurrency projects have tried running campaigns saying Vitalik supports their project after sending their tokens to Vitalik ‘s wallet address without his knowledge.
According to Vitalik he noticed earlier this year that he had billions of dollars of a token called Shib in his cold wallet address.
At the time Vitalik was a billionaire from his eth holdings alone so he figured that donating these dog tokens would be the best course of action.
There’s just one problem and that’s that Vitalik was stuck overseas because of the pandemic and part of his cold wallet address was at his parents home in Canada.
After assembling the full seed phrase Vitalik accessed his cold wallet and proceeded to burn 80 percent of the Shib tokens he’d been given.
He then donated the remaining 20 to various organizations and causes notably the india coveted relief fund and an institute which specializes in longevity research.
There are apparently other organizations which have yet to announce that they’ve received Shib tokens from Vitalik as a donation.
Now this is important to note because it’s been falsely reported that Vitalik burned ninety percent of his Shib and donated the rest to just the India covert relief fund.
In any case the total value of the Shib Vitalik burned was over six billion dollars at the time.
It’s unlikely that this money could have been cashed out because of market depth but that’s neither here nor there.
As with leash, Shib does not have a specific Use-Case.
However, Shib can be staked to earn a boat load of bone in addition to 0.1 of all Eth swap transaction fees on Shiba Swap which is likely to be lucrative.
Who Is Ryoshi?
Regardless of who Ryoshi is it’s clear that he has close connections to some very important people in crypto and this means that he’s not just some anonymous developer who came out of nowhere.
To be clear I don’t mean to imply that Ryoshi is some sort of malicious actor looking to get rich quick quite the contrary in fact.
Ryoshi apparently has zero stake in Shib and only bought a bit at the beginning on uni-swap like everyone else before selling shortly afterwards.
This is easily verified by checking Shib’s distribution on Etherscan which is pretty equitable for a meme token.
What’s more is that even though Ryoshi put this project into motion he doesn’t seem to play a very important role at all.
Almost everything about Shiba Inu has been made by its community so much so that Shiba Inu’s own social media accounts have been hijacked on multiple occasions by bad actors looking to undermine the project.
Dogecoin sympathizes perhaps.
As many questions as there still are around Shiba Inu there’s no doubt that this is a dog crypto unlike any other.
And it may in fact be the dogecoin killer.
Shiba Inu’s origin story is eerily similar to Dogecoins.
Both began as a joke and were it not for Elon Musk’s tweets they would both be dead altcoins.
Where Shiba Inu and Dogecoin differ is the connections they have to the crypto community.
Doge is really just a meme and nothing more.
All the development and growth seems to be coming from a handful of fanboys who have probably lost touch with reality by now.
By contrast Shib is close to becoming a big player in Ethereum’s ecosystem by overcoming the shortcomings of Dogecoin.
As community driven as Shiba Inu is there definitely seemed to be some seriously prolific people behind the project.
It wouldn’t surprise me at all if Rayoshi is in fact someone well known and liked by the Ethereum foundation.
You don’t just magically find yourself hanging out with Vitalik.
Vitalik also fits the profile of a quote successful businessman who has no shortage of eth and also has a history of handing out cryptocurrency to projects and causes he believes in.
It’s likely that Vitalik knew about his Shib allocation in advance.
But like Ryoshi, Vitalik probably didn’t think Shiba Inu would become a billion-dollar enterprise.
well I certainly don’t doubt Vitalik ‘s character I find it convenient that the dollar amount of Shib he donated corresponds to the dollar amount he held in other cryptocurrencies at the time.
I’m not familiar with Canadian tax law but I don’t think gifts are taxed and that Shib donation is probably tax deductible.
If I’m correct this would make it possible for Vitalik to sell over a billion dollars in cryptocurrency tax-free this year if he wanted to and more power to him if that’s the case.
If Shiba Inu shows us anything it’s that it really doesn’t take that much to make money in cryptocurrency.