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Birth of SHIB
Regarding the birth of SHIB, there are more or less suspicions of looting Dogecoin. At that time, Dogecoin was soaring, almost all the traffic in the currency circle was attracted by Dogecoin, and there were many pet-type tokens, and SHIB was naturally one of them.
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Why SHIB Will Succeed
Compared with most popular pet tokens, SHIB was able to reap a thousand-fold increase within a few months of issuance, which is indeed very successful. So why does SHIB stand out? Lets talk about my personal views with everyone.
1. Musk called for orders. Like Dogecoin, SHIB has also been favored by Musk, who tweeted in March that he was buying SHIB. Musk’s cargo effect began to spread from Dogecoin to SHIB, starting the skyrocketing mode. After all, the current price of Dogecoin has risen to a high level, and the willingness of retail investors to take over is not too strong, while SHIB is still in the initial stage of issuance, and the price is still at a low level, and there is still a lot of room for growth.
2. The relationship with God V. SHIB is the only one among many pet token projects that has a relationship with V God. It can be said that the team destroys half of the tokens to V God, which can be said to be a very clever marketing method. At the same time, photos of the SHIB team traveling with V God are still circulating in the market, making people imagine that SHIB seems to be inextricably linked with V God. Of course, we dont know the truth, but this is enough to ignite the enthusiasm of retail investors to buy.
In addition, SHIB chooses to deploy on ERC20, which has a high gas fee, which has opened up a gap with the Tugou project deployed on BSC and HECO, making it even taller.
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Advantages of SHIB over Dogecoin
SHIB has a nickname called DOGECOIN KILLER. Based on Dogecoin, SHIB has made a more decentralized attempt. Many people attribute the surge of Dogecoin to the victory of decentralized tokens. Compared with Dogecoin, the decentralization of SHIB is more thorough.
As mentioned earlier, the team destroyed half of the total SHIB issuance to the V God address, and the other half was locked in Uniswap and discarded the private key. This means that anyone who wants to own SHIB must purchase it in the market, and the official team does not have any tokens to sell for profit, which ensures the fairness of SHIB token distribution. It is worth mentioning that the 500 trillion SHIB and 10ETH officially locked in Uniswap form a transaction pool, which guarantees the price of SHIB. Even if there is no buy order in the market, traders can exchange a little bit of ETH back from Uniswap without completely returning to zero.
The distribution of Dogecoin is based on the traditional POW model. Hardware mining itself has a certain threshold, which invisibly planted the seeds of centralization. It may not be obvious when the price of Dogecoin is low at the beginning, but Now that the price is high, it becomes more prominent.
In terms of the total amount of tokens, there is no upper limit on the total amount of Dogecoin issued. In the first year, 100 billion will be mined at one time, and 5 billion will be issued every year thereafter. The total amount of SHIB issued remains unchanged, with a total amount of 1 quadrillion. Compared with Dogecoin, which has an unlimited supply, the token price of SHIB has more appreciation potential.
In terms of application scenarios, after so many years of development, Dogecoin has been mainly used for reddit, facebook and other community rewards, and now it has been accepted by many merchants and has begun to be used in some small commercial payments.
Different from the single application scenario of Dogecoin, the goal of the SHIB team is to create a complete ecosystem. SHIB will be the governance token of the entire ecology in the future, and stable coins LEASH (dog leash) and BONE (bones) will also appear. BONE is the decentralized financial token of the ShibaSwap exchange. Shibaswap will be launched in the near future. At that time, ShibaSwap will become the core of the entire ecology, and the value and circulation of SHIB will be further improved. Shibaswap is also a supplement to Uniswap and other products, and is more suitable for small white player.
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SHIBs popularity exploded, triggering a dispute over exchange traffic
The Matthew effect is also vividly reflected in SHIB. With the further rise of SHIBs popularity, major exchanges have also begun to pay attention to SHIB, and launched SHIB trading exchanges one after another, which has made SHIBs popularity continue to rise. Matcha, which has always had a keen sense of smell, launched SHIB a long time ago. Recently, exchanges such as Huobi, OKEX, and GATE have also launched SHIB. Even Binance also stated that it will launch SHIB as soon as possible. The most important thing is that these exchanges list SHB free of charge.
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The impact of the SHIB effect on the currency circle
Recently, the huge gains of Dogecoin and SHIB in the currency circle have convinced everyone, satisfying the fantasy of new leeks in the currency circle to get rich in the currency circle, and subverting the three views of many old leeks. The Dogecoin effect and the SHIB effect have more or less had a certain impact on the currency circle.
For newcomers who have just entered the market, they enter the market with the mentality of getting rich, and the rising effect of Dogecoin and SHIB has amplified this mentality, which is obviously not conducive to the healthy development of the currency circle. Regardless of the real value of Dogecoin and SHIB, this short-term surge must have formed a huge bubble. In the end, it will be the majority of retail investors who will be injured when the bubble bursts, and it will always be a very small number of people who really benefit from it.
However, the old leeks in the market who insist on value investment, the recent asset growth rate is obviously dropped by Dogecoin and SHIB. Value investing is always too far away from retail investors. When junk coins are being hyped, the mentality of many old leeks is indescribable. Years of experience in currency speculation is not as good as a stud for a newcomer who enters the market, and is beaten in the face by the newcomer every minute.
In the investment market, heroes are never judged by value, but heroes by winning or losing. Stirrings like Dogecoin and SHIB will definitely appear in the currency circle. Investors should stick to their investment strategies and adjust their mentality. Remember that sentence, you will never earn money beyond your knowledge, unless you rely on luck; but the money earned by luck will eventually be returned by strength, which is an inevitable trend.
