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Shiba Inu (SHIB)

Shiba Inu, usually called SHIB, is a memecoin on Ethereum. It’s a token, not its own blockchain.

Last updated • 2 min read
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What is Shiba Inu (SHIB)?

SHIB uses the ERC-20 standard. These are widely used rules for tokens on Ethereum, a blockchain that records transactions.

A smart contract, which is code on the blockchain, tracks how much SHIB each address holds. The code also processes SHIB transfers. If you send SHIB directly on Ethereum, you need ETH to pay the network fee. You can’t pay that fee in SHIB.

SHIB can also be used on Shibarium through a bridge. A bridge connects two networks. In this case, SHIB remains a representation of the same tokens, not an additional permanent supply.

An example of Shiba Inu (SHIB)

Say you have SHIB in your crypto wallet and want to send some to someone else. The smart contract lowers your SHIB balance and increases the recipient’s balance.

The transaction goes through Ethereum. That’s why you need ETH as well as SHIB to pay the network fee. Without ETH, the transfer can’t be processed.

Why is Shiba Inu (SHIB) important in crypto?

SHIB often comes up in discussions about memecoins and Ethereum tokens. It’s important to know that SHIB isn’t its own blockchain, and it isn’t the token used to pay network fees on Shibarium. Shibarium uses BONE for that.

News about a SHIB burn may mean that tokens have been permanently destroyed through the token contract. This reduces the total supply recorded by that contract. Sending tokens to a dead address may seem similar, but it’s technically different.

SHIB can also be used in liquidity pools to enable token swaps. This comes with risks, such as smart contract bugs and impermanent loss. With impermanent loss, the value you end up with may differ from what you would have had if you’d simply held the tokens.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.