Due to its resemblances to Dogecoin, another cryptocurrency developed as a prank and amassed a sizable fanbase, SHIB coin has drawn notice.
In recent months, the coin’s value has significantly increased as some investors consider it a possible investment option. Investors should conduct their study and fact-check to understand the dangers and possible benefits before buying any currency, including the SHIB coin.
Taking into account that SHIB is a token rather than a coin. Coins are separate blockchains, whereas tokens are constructed on top of current ones. Read more factors that can Influence Ethereum’s Price movements.
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SHIB token is based on the Ethereum blockchain and profits from its technology. Coins can act autonomously and use their interactions, whereas tokens depend on the network externalities of the blockchain upon which they are built.
This difference between the two types of assets is crucial. This may impact how well the larger crypto community uses, values, and adopts them.
Also Read: Top 5 Shiba Inu wallets in 2023
Shiba Inu: What Is It?
A currency other than Bitcoin, Shiba Inu is built on Ethereum and has the Japanese hunting dog breed Shiba Inu, just like its symbol. Shiba Inu is often considered a replacement for Dogecoin; in fact, promoters of Shiba Inu claim it as “the Dogecoin killer.”
Shiba Inu and Dogecoin are examples of viral coins, digital assets linked to a particular subject and sometimes introduced as a mockery or even an inside joke instead of a useful digital commodity.
Understanding SHIB token
The article claims that Shiba Inu was created to respond to the following straightforward query: “What would occur if a currency program was 100% managed by its community?”
Ryoshi, the organization’s founder, explains that it began as an “experiment in decentralized spontaneous community creation.” Ryoshi asserts that collective decentralization can forge stronger bonds than a centralized team could manage.
Almost 500,000 people who make up the SHIBArmy’s base support its founding tenets, which are:
The project began from scratch, intending to build something from nothing. It was not established on the foundation of an already-established group of people or a team that had already been put together.
Shiba Inu was developed on and is maintained on the Ethereum platform rather than its network because it is an Ethereum-based ERC-20 currency. According to Ryoshi’s statement in the paper, he decided to create the Shiba Inu environment on Ethereum since it was already safe and reliable and permitted the project to maintain its decentralized nature.
Five best traits of SHIB token an investor should know
1. Popularity :
Inu token has been quite popular in the cryptocurrency market due to its parallels to Dogecoin and its adorable Shiba Inu dog brand, making it more appealing to traders.
2. Low cost:
The token’s cheap cost per unit opens it up to a larger variety of investors who could not buy more expensive cryptocurrencies, potentially expanding its user base.
3. High potential returns :
Due to the token’s low cost per unit, even a little increase in value might generate large profits for investors, making it a desirable investment choice.
4. Support from the network :
The Shiba Inu token has a strong internet forum of backers who encourage and lobby for the token, creating a sense of belonging and opening the door for future development.
Shiba Inu coin has good liquidity thanks to its availability on several well-known bitcoin trading, which makes it simple for buyers and sellers.
Because of its resemblance to Dogecoin and its adorable Shiba Inu branding, the SHIB token, which runs on the Ethereum blockchain, has become increasingly popular. Since it is a token rather than a currency, it depends on the network externalities of the blockchain upon which it is based.
Strong support from the SHIBArmy fosters community and opens the door for potential future growth. It is more accessible to a wider range of investors thanks to its low cost per unit, and a small increase in value could result in substantial rewards, making it an attractive investment option.
However, investors should do their own homework and fact-checking to fully grasp the advantages and disadvantages of any cryptocurrency, including SHIB.