ShibaInu (SHIB) Bites at DOGE with Binance Listing
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ShibaInu (SHIB), a token aiming to emulate the path of Dogecoin (DOGE), became one of the top gainers in the past day. An announcement of an upcoming Binance listing pushed prices up another 157% on the day, despite the overall crypto market correction.
The listing happened at a time when the Binance exchange was taking its time to select the new addition for a listing. SHIB will be listed in the Innovation Zone of Binance, a trading testground for projects with new types of tokenomics. As such, SHIB will not be subject to any risk mitigation or trading restrictions.
SHIB Tokenomics Still Experimental
SHIB is an ERC-20 token with a large supply, which incentivizes new buyers to hold and wait for appreciation. SHIB has a total supply of one quadrillion (1,000,000,000,000,000) tokens, with more than 50% held by the team and other significant wallets dedicated to liquidity pairs. There is a total of more than 296,000 SHIB addresses for small-time holders, reportedly the size of the SHIB community.
Until recently, SHIB expanded relatively slowly, before the latest vertical price spike.
SHIB appreciated to $0.00003589, already up 2,122% in one week. The chief selling point of SHIB was that the holding incentive and increasing liquidity would lead to the coin shaving off zeroes, with a promise to perform 10X, 100X and 1000X gains over time.
The SHIB final play is to gain to the price of a penny or above, repeating the unexpected success of Dogecoin (DOGE). But the project also adds a DeFi element to speed up the gains, as only DOGE had the meme energy to spike as high as $0.71.
SHIB also has a small Poloniex market that further exposes its volatility. The token is still relatively new to trading, which may lead to rapid price moves either up or down.
Uniswap Taken Over by Dogs
SHIB is just the currently most prominent token to take up the underdog story. The SHIB/ETH and SHIB/UNI pairs helped put the new token among the top 10 pairs on the Uniswap decentralized exchange.
But the SHIB pool only holds $8.78M in liquidity, and is nowhere to be seen among top pools. The Uniswap exchange also carries several dog-meme coins, such as AkitaInu, Elon Shib Pup and Doge Killer.
Given that the SHIB market cap is calculated at $14B, the current liquidity is inadequate to support the prices, in case even a small fraction of investors decide to sell. The entire value of SHIB hinges on the meme and the drive to hold onto the assets. So while multiple SHIB owners have become millionnaires on paper, they would have little leeway to realize that price.
A Binance exchange listing and trading may lead SHIB to new price action, though similarly illiquid tokens are highly risky. The exchange’s CEO, Changpeng “CZ” Zhao, warned to never invest in a token without understanding it.
Binance has hosted volatile assets in the past, and SHIB is no exception. At this price point, it is possible SHIB will backtrack very fast.
ShibaInu Aims to Protect Value
The ShibaInu team is aware that a rug pull or selling can break the whole project. For that reason, there is a planned token supply burn. The Uniswap pairs also have their liquidity locked in, with the keys to move the coin destroyed. This means SHIB will not experience rug pulls from a large “whale”.
To perform their proof of burn, large tranches of SHIB are burned by sending them to Vitalik Buterin’s ETH address. The address is known and public, and has not moved coins or changed over the years.
SHIB is still a sub-penny asset, and may spark speculation due to its low market price. In the past, DeFi projects have gone through initial volatility, then re-established themselves as more reliable. SHIB is still in its early stages, offering a new DeFi model of engineered scarcity.
Where ShibaInu Wants to Go?
The idea of SHIB is to create a community that is not willing to sell off immediately. In the future, the SHIB token ecosystem may also host crypto art and be used for an NFT market.
The project also carries the LEASH token, with a small 100,000 supply. The upcoming BONE token is not yet released, but will promise another type of tokenomics through locked-in liquidity.
Using and moving SHIB is accessible through Ethereum wallets. However, gas fees, network congestion, or unexpected delays may add to the token’s risk.
DOGE Keeps Most of the Gains
In the meantime, DOGE still hovers around $0.47, down from a peak above $0.71. The price may be attacked by Bitcoin (BTC) traders attempting to short it.
DOGE is still actively traded in its Binance International pair against USDT, and may add to the hype for the creation of new meme-based tokens.
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