Shiba Inu Phenomenon. How the project became popular and why the token fell in price

The memorial token first went up 26 times in a couple of days, and then its quotes instantly fell by more than 50%. What is the secret of Shiba's success and what does Vitalik Buterin …

The memorial token first went up 26 times in a couple of days, and then its quotes instantly fell by more than 50%. What is the secret of Shiba's success and what does Vitalik Buterin have to do with it

Shib Coin is an ERC-20 token on the Ethereum blockchain, named after the Shiba Inu dogs. On the official website of the project, the tokens themselves are called "Meme Coins". The project was launched in August 2020.

The founder of Shiba, hiding under the nickname Ryoshi, chose the Ethereum blockchain for a reason. He believes that unlike most other networks, Ethereum is truly decentralized, secure, and well established. According to the founder of Shiba, it is Ethereum that allows the creation of free decentralized communities.

Shiba Ideas

On the project's website, the token itself is called the "Dogecoin killer", and it is said that its main task is to surpass the total capitalization of Elon Musk's favorite coin without crossing the price mark of $ 0.01. The Shib whitepaper, which the authors jokingly call "woofpaper," says Shib is an experiment in spontaneously building a decentralized community.

The creators of Shiba were inspired by the example of the WallStreetBets community, which inflated the value of the shares of GameStop and several other companies. The creators of Shiba call their community "Shib Army". According to their estimates, this "army" already includes more than 120 thousand people.

Shiba's main goal is to create the best Decentralized Ecosystem (DECO) on the planet. The first step towards this will be the creation of the Shiba Swap decentralized exchange. On the exchange, it will be possible to engage in profitable farming and liquidity mining through the coins of the Shib ecosystem. Also, as part of the development of the ecosystem, the Shib team will release their NFT tokens and a new Bone coin. There is already a second coin in the ecosystem, Leash. Its total emission is only 100 thousand coins, and the cost is $ 1.8 thousand, according to Coinmarketcap.

What does Buterin have to do with it?

The creators of Shib claim that they were the first to abandon the practice of owning tokens by the founders and developers of the project. To do this, 50% of Shib was sent to the Uniswap exchange and blocked, and the remaining 50% were sent to the wallet of Ethereum creator Vitalik Buterin. Ryoshi wrote in the white paper that "there is no greatness without vulnerability." The creator of the altcoin stressed that "until Vitalik betrays the project, he will live and develop."

The mem-token has gained great popularity, and its price has increased many times over. In four days, the cost of Shib has risen almost 25 times.

As a reaction to the multiple increase in the price of the token at the end of the May holidays, Shib was listed on the OKex and Huobi exchanges. By this time, Shib's trading volume was about $ 500 million, and after listing it had risen to $ 8 billion.

However, the hope for Buterin at some point let the creators of Shib down. Of the 505 trillion Shib tokens held in his wallet, the creator of Ethereum donated 50 trillion Shib to charity in support of the India Covid-Crypto Relief Fund. As a result, the Shib price fell more than 50% from the high.


As in the case of Dogecoin, skeptics say large holders will sell their stakes in Shiba, and thus sharply reduce the price of the asset. However, the possibilities for this are limited. For example, the second largest holder of Shib had $ 176.5 million worth of tokens, but did not sell them. This probably happened because the liquidity available on the exchanges would only be enough to receive about $ 4 million. For this reason, from May 3 to May 9, among the 50 largest holders of Shib, only one sold tokens.

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