In this newsletter, we are profiling Shiba Inu [SHIB]. In previous newsletters, we have profiled Bitcoin, Cardano, Stablecoins, Uniswap and many others. Access all our newsletters in our archives at madcapx.substack.com.
The Short of It
Oh my… another Dog coin, and this one could have made you a billionaire in less than a year. Who would have known another joke makes it to the top 10, and it isn’t even a real coin, just another token.
Shiba Inu started off as a joke/meme just like Dogecoin and was hailed as an experiment in decentralized community building. It was launched in 2020 by someone calling themselves Ryoshi, a pseudonym of some anonymous crypto developer. SHIB is being called the “Dogecoin killer,” with hopes of dethroning all other dog-related meme cryptocurrencies.
Whereas DOGE is an actual coin with its own blockchain, SHIB is just an ERC20 token on the Ethereum blockchain. When it was first minted, one quadrillion (that 1 with 15 zeros following it!) tokens were created, with 50% of that being sent to Vitalik Buterin of Ethereum. The other 50% was locked into a SHIB/ETH liquidity pool on Uniswap. Vitalik did not ask for this large donation and was unsure of what to do with it, so he ended up burning 80%. He donated the remaining 20% to various organizations, including Covid relief for India and a life longevity research group. An anonymous businessman donated 10 ETH for liquidity for SHIB on Uniswap, which initially helped boost trading of the token.
The whitepaper (or “woofpaper”) can be read at https://github.com/shytoshikusama/woofwoofpaper/raw/main/SHIBA_INU_WOOF_WOOF.pdf and contains all the details of their complicated but supposedly fair distribution and staking model. You can read all about digging, burying, and woofing… all terms related to various DeFi functionality on the Shibaswap platform.
Apart from being a meme token, Shiba Inu now has its own decentralized trading platform called Shibaswap. With some tweeting from Elon Musk, it has again boosted SHIB's popularity and trading. Just recently, SHIB was also listed on Coinbase, the largest US-based cryptocurrency exchange.
SHIB is not the only token in this ecosystem. BONE, which has a maximum supply of 250 million, and LEASH, which has a fixed supply of only 107,646, are currently two others. BONE is used as a governance token that allows holders to vote on items in their Doggy decentralized autonomous organization (DAO). LEASH was created with the intent of being able to tame the price of Dogecoin by having it rebase once a day to match 1000/1 of the value of DOGE. This ended up not being continued, and LEASE no longer has a use case, but like the other tokens, it can still be staked.
The community of developers around Shiba Inu continues to put in the effort to push the popularity of the token. The “artistic Shiba movement” was created to foster art in their NFT market. An Amazon Smile campaign was made in order to collect donations for the rescue of real Shiba Inu dogs around the world. There was also a significant incentivized movement to get Uniswap and Sushiswap users to move their assets over to Shibaswap. The first annual “Shibacon” is scheduled to take place in the summer of 2022.
A layer-2 blockchain solution, called Shibarium, is currently being developed for Shiba Inu, which will feature BONE as the primary token. It is rumoured that developers from Polygon are the ones working on this project. This will also include the creation of SHI, a stablecoin that will be pegged to 1 US cent.
While there are a number of other dog-themed cryptocurrencies, such as Dogecoin, BabyDoge, Jindo Inu, Alaska Inu, and Alaskan Malamute token, only Shiba Inu has this amount of momentum and active development propelling them forward.
SHIB/USD is the only trading pair we will examine. Since there is such a large amount of SHIB tokens in circulation, it can not trade against the BTC pairing without Shiba Inu increasing in value by approximately another 10x to get to 1 satoshi.
The graphic below shows the incredible gains SHIB has made in 2021. From the lows in September to the peak, it gained 1649% or 16x. You may have seen tweets or stories from someone who bought $8000 SHIB, and now it is worth $5.7 billion.
Is it possible to have bought $8000 and now it is worth in the billions? Yeah, it does seem like it. If you purchased it in January 2021, you would be up approximately 712,500x today. If you bought in February, you could be up 7125x, and buying in September, it is up 10x.
Even if you had bought only $100 USD worth of SHIB in January 2021 or earlier, you would have $71 million worth.
You may wonder if there is enough liquidity to cash some of those profits out if you were one of the lucky ones to speculate on yet another dog coin. On Binance’s order book, there is $3.6 million at $0.00007 and another $42 million ready to buy over 666 billion Shiba in the $0.00006 range. Though, there is plenty more selling in the 8 to 10 range. Over the last 24 hours, 31 trillion Shiba tokens have been traded on Binance alone.
Shib has been one of our favourite crypto to trade recently. Its been making really clear moves and massive impulses!
We recently got a bounce off the 786 fibonacci which we anticipated and we retested that again. We're only looking for buys. Watch out for corrections and enter and HODL! — Altsignals on TradingView and graphic below
Probably everyone involved in trading or cryptocurrency knows about SHIBA INU and DOGECOIN . There is now a competition between these coins and the market is also divided into two camps, those who are for SHIB and those who are for DOGE.
As early as tomorrow, Binance will add SHIB/DOGE trading pair. Many speculate that after that there will be a real battle between these coins.
It will be interesting to watch. SHIB is currently ranked #9 on coinmarketcap, while DOGE is ranked #10. — Yuriy_Bishko on TradingView and graphic below
The Other Trend Lines
PlanB has been predicting the BTC price quite well over the last few months. Let’s see how far he is on the November and December monthly closing. Will November be at about $98k and end of year high at $135k?
This portfolio section gives you an idea of what sort of return you can get when investing in crypto assets.
BTC/USD FUND is up 467% since October 1st, 2020. Since this is a long-term holding, it is best kept in cold wallet storage or a safe custody solution. We continue to see a long-term hold position as our best stable alternative. This past week bitcoin has been ranging between $57,820 and $63,293 USD in value.
FUND 3 started on November 16, 2020, with $1000 USD in value and was invested into BTC, LTC, ETH, and ADA. The total amount of BTC value from the four coins has had a gain of 94% since the start. The USD fund value is up 612% since the beginning. We will hold these positions to see how well it does against our BTC-only portfolio. LTC is down -26% against BTC. ETH is up 157% against BTC since the start. ADA has a gain of 414% against BTC and 1765% to USD.
BLWX Fund started on February 22, 2021. They all are assets we have profiled in the last few months, and we are interested in how they will perform in 2021 against BTC. BAT has a gain of 61% against BTC since the start; LINK is down -10%, WAVES is up 112%, XMR is up 3%. Overall, against BTC, the fund is up 41% and 57% against USD.
Overall, Bitcoin should be your first choice as an investment in crypto, though many digital assets can give you amazing gains if you manage your risk. As a long-term investor, we see it as our largest portfolio investment. If you are a day trader, there are many great assets to put on your watch list. Look through our previous newsletters to find some.
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Madbyte does have its own token called MADX on the Ethereum network and Madbyte on the Waves network. The two tokens are interchangeable on Madcapx.com.
Disclaimer: Nothing in this newsletter is intended to serve as financial advice. Therefore, do your own research and due diligence before applying any of the techniques highlighted in this post. Any risks or trades based on this newsletter are committed at your own risk.