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What is Dogecoin (DOGE) token?
If you follow cryptocurrency news with interest, you have probably heard about Dogecoin (DOGE). But, if you still don’t know it, I’ll quickly explain what it is and why it has gained so much interest in recent months.
DOGE is a cryptocurrency that was born in 2013 as a joke and, to everyone’s surprise, including that of its creators, has skyrocketed to incredible levels this past year, especially thanks to the backing of celebrities such as Tesla CEO Elon Musk, Dallas Mavericks owner Mark Cuban and rapper Snoop Dogg.
Dogecoin is an altcoin that has as its logo one of the most popular memes on the internet: a Shiba Inu dog.
But, the most surprising thing is that a cryptocurrency like Dogecoin, which was initially created without having any utility and has no innovative features that distinguish it from the rest of the cryptocurrencies, today has experienced an incredible price increase. Especially when Elon Musk started tweeting about it, calling it the “people’s cryptocurrency”.
Today Dogecoin has reached a market capitalization that was considered virtually impossible a couple of years ago, proving that an asset with little or no real-world use can skyrocket disproportionately simply because people collectively believe that value can increase.
This is why today we are witnessing the creation of thousands of useless tokens on networks, hoping to become the next Dogecoin.
If you already know Dogecoin and its history well and want to learn about one of the cryptos that have been created as a DOGE clone and today is becoming a dangerous contender for this crypto-broma, then read on.
What is Shiba inu (SHIB) token and how does it work?
SHIB is the name of the Shiba inu cryptocurrency token, It is a token whose logo keeps the face of the same Shiba Inu dog used by Dogecoin and, as its developers state, aims to “replicate Dogecoin’s success of turning a joke into a money-making machine”.
Shiba Inu (SHIB), dubbed the DOGECOIN KILLER, was launched under the ERC-20 standard of the Ethereum (ETH) blockchain. SHIB allows users to hold billions or even trillions of tokens.
Although very little is known about Shiba Inu, its whitepaper (called ‘woofpaper’ by its team) explains that it is composed of 3 tokens (two already in circulation and a new one yet to be launched):
- Shiba Inu (SHIB): is the first token and has a market capitalization of $12,080,422,457 and a circulating supply of 394,796,000,000,000,000 SHIB. At the time of writing, it is surprisingly ranked No. 18 among existing cryptos.
- Leash Dogecoin Killer (LEASH): it was originally established to be an elastic bid token, linked to the Dogecoin price and this is why it used to be called “DogeCoin Killer”. But it is no longer linked to the DOGE. Today it has a total circulation of only 100k tokens, unlike Shib, which has a much larger supply. This token offers special rewards for those who provide liquidity.
- Bone (BONE): the new governance token that you can earn directly in ShibaSwap using the other tokens.
Shiba tokens will be usable on ShibaSwap, its own decentralized exchange and the user will have 2 options to earn rewards on its network:
Staking: called BURY, which consists of placing your tokens in a pool and earning a fixed percentage of rewards.
Liquidity Farming: called DIG, which allows you to provide liquidity and place your tokens in a pool to earn a percentage of the transaction fees collected.
Shiba inu VS Dogecoin
It is enough to look back in time to see how, since 2017, parallel to the ICO boom, we have seen the unexpected growth of a large number of new small-cap cryptocurrencies. Most of them were created with no real utility, and today they are gaining market capitalizations in the millions of dollars, seemingly for no reason.
Thus there are many tokens that have gained fame just for their funny names and this may be the case of DOGE and SHIB.
Despite this, the events are showing us that SHIB is trying very hard to stand out and prove that it can have a real use and can be profitable as well without relying on memes alone.
This is evidenced by its skyrocketing value as Shiba Inu, currently worth $0.00003168, has registered a price increase of more than 140% in the last 24 hours with a growth of more than 41,000% in the last 30 days, following its inclusion in several exchanges.
Today SHIB has a circulating supply of 394.796 billion.
So, how in advance, the value of Dogecoin has increased incredibly this last year, especially thanks to the support of celebrities like Elon Musk and the adoption of its community that have made it one of the most popular tokens that today occupies the n. 4 position in the ranking of CoinMarketCap.
Unfortunately Dogecoin just recorded a rough weekend, following Elon Musk’s appearance on Saturday Night Live.
Subsequently, the price of Dogecoin recovered somewhat, following the announcement that SpaceX, a space company owned by Elon Musk, will launch the “DOGE-1 Mission to the Moon” and as a method of financing the company will accept DOGE as a method of payment for the development of the lunar mission.
So we can say that the two projects: Dogecoin and Shiba Inu, are very similar if we consider the rapid rise they have registered in such a short time as well as the strong fluctuations and price volatility that at the moment characterize them.
Typically, in the cryptocurrency universe, cryptos that are based on an original product and valid use cases are more likely to survive and go far.
As far as Shiba Inu dog tokens are concerned, it won’t take long to see where they go and whether they will continue to grow and expand beyond all logic.