What is Shiba Inu? Origin and Risks
The Shiba Inu token (SHIB) has stormed the markets as a rival to Dogecoin (DOGE). It had skyrocketed in the last few days.
SHIB, which had a price of USD 0.000004 for Friday, May 8, reached a price of USD 0.000029 during the early hours of Monday 10 (0:04 AM UTC). On late Tuesday 11, it holds a price of $ 0.000033 per unit, according to CoinMarketCap. That's an 8.25 fold increase in three days.
The Shiba Inu token listing in different exchanges, such as KuCoin and Huobi Global, drove the token price surge. In addition, Binance included SHIBA in their futures market. In futures trading, speculation is the primary tool for investors to generate profitability since it consists of asset price forecasting. Futures trading can be risky.
Binance published a press release announcing the listing of SHIB with the new trading pairs SHIB/BUSD and SHIB/USDT, the stablecoins that track the US dollar of Binance and Tether, respectively. In the definition that Binance provides about SHIB, it reads:
"SHIB is an experiment on a decentralized community and another "meme" currency similar to Dogecoin. SHIB is Shiba Inu's native token and will be the first token to be listed and used as an incentive for ShibaSwap, a decentralized exchange."
SHIB is an ERC-20 token based on the Ethereum network. As Binance pointed out, the project will feature a Uniswap-style decentralized exchange shortly. ShibaSwap is still in development, and according to the project's website, they do not have a launch date. SHIB is not available for purchase in ShibaSwap. Although it has been listed in several centralized exchanges, they recommend buying it through Uniswap.
The origin of the "Shiba Inu" name
From the six original and different breeds of dogs from Japan, The Shiba Inu is the smallest one. It is a small and agile dog that supports quite well mountainous terrains. Since it was initially bred for hunting, it is similar to the Akita Inu, although it is much smaller in size. The Shiba Inu bread is one of the few ancient dog breeds that still exist in the world.
SHIB Risks, According to Binance
In the official announcement of Binance, they issue a series of warnings about investing in SHIB. First, they point out that three portfolios have 50, 7, and 3 percent of the total SHIB issuance at the time of the announcement. Likewise, Binance points out that being a relatively new token can present high volatility in its price, so they suggest doing good risk management and understand the project before investing in SHIB.
Binance also points out that they listed the coin in the Innovation Zone, a space dedicated to new and high volatility tokens. To enter this exchange area, users must carefully read and understand the terms and conditions of the service. "Binance will do its best to include high-quality coins but will not be responsible for investment losses," they say.
Reflecting its bullish rally of recent days, SHIB's arrival on the world's largest cryptocurrency trading platform by trade volume did not go unnoticed. It appears to be causing some trouble among Binance traders, causing a collapse in Ethereum deposit addresses.
Binance CEO Changpeng Zhao announced on Twitter today about Shiba Inu's arrival, noting that his listing responded to growing demand from customers. The demand has been so huge that it has caused an unprecedented event within the giant exchange.
However, Zhao cautioned that listing the token within Binance's trading platform should not be construed as an endorsement of the potential value of the coin: "Super high risk. NFA [Not financial advice]," he added in the tweet.
Does Dogecoin have a rival?
For its part, Dogecoin (DOGE) encountered some difficulties over the weekend. Elon Musk pointed out that Dogecoin was a "scam" from the comedy program Saturday Night Live (SNL), which generated a 35% decrease in the price.
Currently, the decline appears to have slowed with the announcement that the companies SpaceX and Geometric Energy Corporation (GEC) will carry a cargo paid with DOGE on an upcoming trip to the Moon.
Binance listed the SHIB token, and the exchange warns of its risks.
SHIB is a meme cryptocurrency that seeks to compete with Dogecoin (DOGE).
The token has multiplied its price since listed.
Learn more at the Shiba Inu website.