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Shiba Inu(SHIB) Explained: From Meme Coin to Crypto Powerhouse

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Paxful Team
Paxful Team

Shiba Inu (SHIB) is a decentralized cryptocurrency that started as a meme coin but has since grown into a full-fledged ecosystem.

Called the ‘Dogecoin Killer,’—as a marketing tactic to attract attention and investment— SHIB began as a simple project and quickly gained popularity in the crypto community. 


Key takeaways

  • Shiba Inu started as a meme coin but has slowly become one of the most talked-about coins. 
  • Shiba Inu was launched in August 2020 by  an anonymous developer named “Ryoshi.” 
  • Shiba Inu’s burning mechanism is designed to stabilize SHIB’s price over time and ensure the ecosystem’s longevity.
  • You cannot directly buy SHIB on Paxful, but you can still obtain it by swapping your crypto for Shiba Inu.

With its Shiba Inu dog logo, the coin rode the wave of Dogecoin’s popularity and the wild meme culture surrounding crypto. 

What’s wild is that, despite starting as a joke, SHIB shot up the ranks to become one of the top cryptocurrencies by market cap. A mix of viral social media moments and unwavering support from its community made sure of that.

In this blog, we’ll explore the fascinating journey of the Shiba Inu, its backstory, the ecosystem behind it, and what makes it tick. 

What is Shiba Inu coin?

Unlike Dogecoin, which was a joke about Bitcoin, Shiba Inu has grown into something with actual value.  If Shiba Inu is not just about the meme anymore, What is Shiba Inu Coin used for? 

Here are some actual use cases, including:

  • ShibaSwap: a decentralized exchange (DEX) where users can trade, stake, and, yes, even earn rewards. 
  • Shiba Inu Incubator:  which sparks creativity in the community,
  • Shiboshis: A series of NFTs adding more functionality and appeal to the ecosystem.

Community focus  

What sets Shiba Inu apart is its emphasis on community and decentralization. Understanding this goes a long way toward answering the question, “What would happen if a cryptocurrency project was 100% run by its community?

There’s no big corporation pulling the strings here—SHIB is all about letting its users steer the ship!

The “ShibArmy,” as the community calls itself, plays a massive role in spreading the word, proposing new ideas, and helping the project grow. This model is a perfect fit for the decentralized nature of blockchain, encouraging trust and collaboration among users.

👉 Interact with the ShibArmy here: Reddit and X

Burning mechanism (burning for scarcity) 

So, how does SHIB handle its massive initial supply—seriously massive (one quadrillion tokens)? 

Enter the burning mechanism. Burning means permanently removing tokens from circulation, which decreases supply and increases scarcity. 

It’s a deflationary move designed to stabilize SHIB’s price over time and maintain the ecosystem’s power. With high-profile burns driven by the community and developers, SHIB’s long-term value feels more real and committed than ever.

Shiba Inu’s rise from meme coin to a real contender in the crypto world shows it’s got some serious staying power. With a strong focus on community, decentralization, and scarcity, SHIB is proving it’s more than a passing trend. It’s a project that’s here to stay and still evolving.

History and origins of Shiba Inu

Launched in August 2020 by an anonymous developer, Ryoshi, Shiba Inu began as an experiment in community-driven decentralization.

The Vitalik Buterin story

In a bold move, 40% of SHIB’s supply was sent to Ethereum co-founder Vitalik Buterin. He burned most of it, reducing the supply and bringing massive attention to the project.

Social media Impact

Social media platforms like Reddit and Twitter played a huge role in SHIB’s rise, with influencers and community members amplifying its reach.

The Shiba Inu ecosystem

The Shiba Inu ecosystem has come a long way from its meme-coin beginnings. What started as a playful nod to internet culture has become a full-fledged decentralized finance (DeFi) platform with multiple tokens, unique tools, and a loyal, enthusiastic community.

Here’s an overview of its key components:

ShibaSwap: the decentralized exchange

ShibaSwap is the engine driving the Shiba Inu ecosystem. Launched in 2021, this decentralized exchange (DEX) lets users trade SHIB and other tokens, provide liquidity, and stake their assets to earn rewards. It’s packed with features like “Dig” (liquidity farming) and “Bury” (staking), which sound cuter than they are—they’re all about maximizing your crypto gains.

What makes ShibaSwap unique is its utility. You can make your tokens work instead of just letting SHIB sit in your wallet. Plus, it’s all done without intermediaries, staying true to the decentralized ideals that make blockchain tech so revolutionary.

The SHIB token trio (SHIB, LEASH, and BONE): the foundation of the Ecosystem

  • SHIB: This token launched in 2020 kicked off the Shiba Inu phenomenon. What started as a joke is now a global crypto staple, used as the ecosystem’s main currency and traded worldwide. Not bad for a meme coin, right? 
  • LEASH:  LEASH was initially tied to Dogecoin’s price, but it’s since become its own. With only 107,646 tokens in circulation, it’s rare enough to spark FOMO (fear of missing out). Think of it as the ecosystem’s VIP token—a store of value and a reward mechanism for those in the know.  
  • BONE:  BONE is the governance token that gives users a voice in the ecosystem. With a total supply of 250 million, it’s what you need to vote on proposals and influence Shiba Inu’s future. This is your chance if you’ve ever wanted to feel like a big deal in crypto.  

Shiboshis,  NFTs, and other quirky collectibles

Shiboshis are a set of 10,000 unique NFTs that live on the Ethereum blockchain. These pixelated Shiba Inu avatars have quirky traits and varying rarity levels, making them a hit with collectors. They’re not just cute—they’re a statement. 

Potential risks and considerations

Even though Shiba Inu has gained a cult-like following, it’s not all sunshine and rainbows. Understanding the risks associated with trading or investing in it is essential. 

Here are some critical factors to consider:

Volatility: The nature of meme coins

Meme coins like SHIB are infamous for their rollercoaster price swings. One minute, they’re soaring thanks to a viral tweet; the next, they’re dropping like a stone because the hype has fizzled out. 

Simply put, no one on earth can definitively tell you how much is Shiba Inu coin.

Case in point: SHIB’s price history is a masterclass in unpredictability. If you’re jumping in, ensure you’re ready for the whiplash.

SHIB’s price has experienced dramatic highs and lows in its history, with swings often influenced by market sentiment rather than fundamental factors. 

Investors should be prepared for rapid and unpredictable changes in value when trading SHIB.

DYOR: (Do your own research)

Before investing in Shiba Inu or any cryptocurrency, it’s crucial to conduct thorough research:

  1. Understand the Ecosystem: Familiarize yourself with the Shiba Inu ecosystem, including its tokens (SHIB, LEASH, BONE), ShibaSwap, and developments like Shibarium.

Before investing, you should comfortably answer the question of where you can buy Shiba Inu coins.

  1. Assess the Risks: Recognize that meme coins often lack intrinsic value and rely heavily on community support and market trends.
  2. Check Credible Sources: Use reliable platforms to verify information and avoid falling prey to scams or misinformation.

How to buy a Shiba Inu coin?

Although you can’t directly buy SHIB on Paxful, you can still get your hands on it by swapping your crypto for SHIB. Here’s how you do it:

Step 1: Follow this guide to buy your crypto of choice:

  • Create a Paxful account: Use your email or phone number to sign up—it’s quick and easy. 
  • Select the crypto you’ll purchase and your payment option. Paxful gives you over 500 ways to pay (yes, 500!). Whether you prefer payment apps, bank transfers, or something else, you’ve got options.
  • Find a seller from a list of available sellers: Browse the list of sellers and pick one with reasonable rates or stellar feedback. Click “Buy” to check out their terms and details.
  • Start the trade: If the terms and offer seem reasonable, enter the amount of crypto you want to buy and hit “Buy Now” to start the trade.
  • Communicate and pay:  Use the chat box to clarify details with the seller. When they’re ready, send the payment and click “Paid.” Paxful’s escrow system will hold your crypto until you complete the trade, so you’re covered.
  • Receive your crypto: Paxful releases the crypto directly to your wallet once the seller confirms payment. Success!

Once you have your crypto, trade it for SHIB. Follow this guide to make it easier for you:

  1. Get a compatible wallet: You’ll need an external wallet that can handle altcoins like SHIB, as Paxful does not support this.
  2. Sell your crypto for SHIB: Return to Paxful and select “Sell Bitcoin/Ethereum/USDT/USDC” from the menu. Then choose “Shiba Inu (SHIB)” as your payment method.
  3. Pick a trade partner: As before, find a trustworthy seller with reasonable rates and hit “Sell” to read their terms.
  4. Start the trade: If their terms sound fair, input the amount of crypto you’re trading and click “Sell now.”
  5. Share your wallet address: Use the chat box to send your wallet address to your trade partner and ask them to send the SHIB.
  6. Complete the trade: Your crypto goes into escrow until the trade is finalized. Double-check your wallet to ensure the SHIB has arrived before releasing your crypto from escrow.

Important Note: Paxful does not provide investment, tax, or legal advice, and you are solely responsible for determining whether any financial transaction strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance. Paxful may provide information that includes but is not limited to blog posts, articles, podcasts, tutorials, and videos. The information contained therein does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the content as such. Paxful does not recommend that any digital asset should be bought, earned, sold, lent out, or held by you, and will not be held responsible for the decisions you make to buy, sell, trade, lend, or hold digital assets based on the information provided by us.

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Paxful Team

Paxful Team

Paxful is a marketplace where people can buy and sell cryptocurrencies directly with each other. You can get digital money instantly and pay with debit, credit, cash, and any currency.

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