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What Are the Top 3 Things People Get Wrong About SHIB?
What are the top three things people get wrong about SHIB? The Shiba Inu project has been such a force in crypto during this run that people are starting to take a second look.
Is there something to this project? There is a lot of misinformation that can come with a meme crypto so it is important that we set a few points straight. We are going to differentiate between coins and tokens, peer into the Shiba Inu ecosystem, and highlight the main idea that gave birth to SHIB. Once we realign these misconceptions, you should have a better understanding to help you make sense of the success of SHIB.
1) SHIB Has Its Own Blockchain
A subtle characteristic about SHIB that differentiates it from DOGE is that it is a token and not a coin. What is the difference? The simple answer is that Dogecoin has its own independent blockchain whereas Shiba Inu is a token that “lives” on another blockchain.
A token functions as a tradeable asset on the blockchain it lives on, and benefits from the properties of that blockchain. A cryptocurrency that is a coin (has its own independent blockchain) has the advantage of being more customizable from the ground up according to the project’s needs and is the reward for mining or staking on the network. However, if an existing blockchain provides all the functionality your project will need, then much time and effort is saved.
SHIB lives on the Ethereum blockchain, which might already indicate to you how different from DOGE it is. As you may know, Dogecoin is essentially a derivative of the Bitcoin blockchain. To be more accurate, it is a fork from the Litecoin blockchain, and Litecoin was built to mimic and improve incrementally on Bitcoin’s functionality. The Litecoin blockchain’s use case has a narrow scope (to be used as money) compared to most other cryptos we see today, thus making Dogecoin’s functionality relatively narrow in scope, too.
As mentioned above, SHIB lives on the Ethereum blockchain. If you were familiar with the narrow scope of Bitcoin, Litecoin, and Dogecoin, then you likely know that Ethereum is fairly opposite in its mission. By this, I mean that Ethereum was designed as a platform to make blockchain technology more accessible for projects with disparate missions. Given that SHIB is a token on the Ethereum blockchain, it benefits from the versatility of Ethereum, which gives it more potential use cases than Dogecoin currently has.
2) SHIB is Limited to a Single Token
The bread and butter behind Shiba Inu is the SHIB token. What can easily be overlooked is that Shiba Inu represents an ecosystem of tokens and services past the allure of SHIB’s meme status. At the moment, there are two other tokens (BONE and LEASH) in the Shiba Inu ecosystem, and a DEX (decentralized exchange) called Shibaswap.
The function of the BONE and LEASH tokens, and the Shibaswap DEX is essentially the same as you would see anywhere in crypto decentralized finance (DeFi). You can stake, provide liquidity and swap Ethereum assets. BONE itself is a governance token for the Shiba Inu community, and LEASH was started as a rebase token with respect to DOGE, but has now been repurposed to have no purpose. You can stake your LEASH on Shibaswap to earn BONE tokens, but that’s about it.
3) SHIB is Just a Joke
SHIB is “an experiment in community governance and decentralization”
These are the words of Ryoshi, the anonymous founder of SHIB, in their initial medium post about the project. This “experiment” has turned out to be a success thus far but, if you do some digging, Ryoshi is no ordinary pseudonymous founder. Ryoshi explains that the founding of SHIB was funded by a partner who seems to have considerable influence in the crypto space.
It’s unclear who exactly Ryoshi or the partner are, but the 10 ETH that was donated has gone a long way. Despite the poor ratings of the SHIB protocol, it is clear that there is a dev team behind SHIB where at least someone knows what they are doing.
Concerning community governance, this is what the BONE token is for. As the BONE token evolves and becomes distributed amongst stakeholders, the idea is that it will become the means by which the SHIB community can participate in the project’s governance.
This community is also known as the SHIBArmy. Currently, the homepage of the SHIB website reads, “A Decentralized Meme token that evolved into a vibrant ecosystem”. Perhaps a token ecosystem wasn’t a part of Ryoshi’s initial plan, but it seems important that it is.
In terms of branding, Dogecoin as a “meme money” is tough to compete with. SHIB’s ecosystem of services are an important differentiator that may prove important to keep SHIB relevant. Perhaps SHIB won’t be successful as a meme money, but as a meme financial product or something along those lines.
Conclusion: SHIB is a Whole Different Animal
We have taken a look at what makes SHIB tick, and at popular misconceptions about the project.
To summarize, it is key to understand that the Ethereum blockchain makes SHIB a different kind of crypto, especially as compared to DOGE. Ethereum is the most popular smart contract blockchain, and its service as a platform for other crypto projects means that SHIB is a bit of a different animal with more versatility as a service. It may not be a “DOGE Killer”, but is better viewed as a well-differentiated meme token.
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