βSmart Contracts, Stake, NFTs, Metaverse, Bull Market, Layer 1/Layer 2, Gas Fees, Blockchain, Wallet, dApps.
\nβ
\nβ
\nOk, yep. It's happening.
\nWe're doing a deep dive on Shiba Inu.
\nHere's why we see this as a low-key genius move:
\nThe whole point of this newsletter is to apply our ever evolving research framework to a range of projects (good and bad).
\nShiba Inu is one of the biggest meme coins in the space...but it isn't exactly held in high regard by the broader market.
\nSo if this investment tanks: we can sleep easy knowing that buying in to bad projects was always part of the plan.
\nBut if it succeeds: we can pat ourselves on the back and pretend as though we hold some secret form of genius within us.
\n(We don't. But we can pretend god damnit!)
\nAt the end of the day, meme coins are always going to be gambles.
\nThey're volatile as hell, and the returns are largely luck based.
\nBut screw it! Let's roll this dice!
\nβ
\nβ
\nAs per usual, let's break this down into two parts: primary value, and secondary value.
\nPrimary Value
\nOk, so when we asked ourselves the question:
\n\"What's the standout feature?
β
(The one that, if it were to disappear, would make the token waaaay less appealing)?\"
We came up with two responses.
\nOn the technical side, the primary value would be Shib's ability to build/run smart contracts.
\n(Just like Ethereum and Solana before it).
\nBut in reality, we'd say it'd be more damaging for Shib to lose the support of its rabid community (aka the 'Shib Army').
\nBecause without it, there're plenty of other, more established, smart contract platforms to chose from.
\nOn the flip side, if it were to lose its smart contract functionality, the blind faith of the ShibArmy could probably still carry it to some extent.
\n(E.g. Dogecoin doesn't have smart contracts and it's doing just fine as a meme coin).
\nSecondary Value
\nAlright, there's a surprising amount of secondary values to cover, so lets get right into it...
\nStaking
\nYou know the drill: users can stake their Shib tokens and earn rewards for doing so.
\nNFTs
\nShib has NFTs. Sort of...
\nThey're essentially just Ethereum NFTs (because Shiba Inu is built on Ethereum).
\nBut if you go to Shiba Swap (Shiba's trading platform), NFTs are listed there. So we figured we'd play fair and make note of it.
\nMetaverse
\nSo the Shiba Inu team are creating their own metaverse...
\nAccording to their PR babble, it will have:
\nCool. That gets us nowhere.
\nHere's where our minds are at with the Shib Metaverse as a potential value-add:
\nDo we think its going to be the metaverse we're all using in 10 years?
\nNo.
\nWill the Shib community populate and use it regularly?
\nProbably.
\nWill this affect our investment?
\nYes, it most likely will.
\nWe'll be holding for just under two years, so this should be long enough for the Shiba Inu Metaverse to launch and have a positive impact on the price of SHIB.
\n(Even if it's largely just smoke and mirrors, the news of a launch like this in a bull market, can go a long way).
\nShibarium
\nHow will the payments be handled quickly and at a low cost in the Shiba Inu Metaverse?
\nUsing their very own layer 2, called 'Shibarium.'
\nIt won't use its own token, but will instead, process transactions on behalf of the Shiba Inu layer 1, and take some of the heavy lifting off its shoulders.
\nThink of it like a trucking company hiring a third-party fleet of vehicles, with higher capacity - so it can offer faster delivery of goods, in greater quantities.
\nTo the customer, it feels like business as usual - they still transact in the same way - the only difference is the trucking company seems to have become more efficient.
\nThat's what Shibarium will do for Shiba Inu.
\nBurn Mechanics
\nShiba Inu has a burn mechanic.
\nBasically, it's a portal where users destroy their Shib tokens, and get RYOSHI tokens in exchange.
\n(Essentially making one meme token more scarce, and getting rewarded with another. It's weird!).
\nShibarium will continue that tradition, but in a more reliable/sensible way - where all of the base transaction fees (aka gas fees) generated on Shibarium, will be destroyed.
\nWhich means, the more the network grows, the more SHIB will be burnt.
\nAnd the more SHIB is burnt, the lower the circulating supply becomes.
\nMaking it more scarce and (assuming demand for SHIB stays steady) theoretically: more valuable.
\nβ
\n\n
The folks that fall into the categories of users, developers and investors will have some crossover.
\nBut weβre going to look at what they want / how SHIB serves them, individually.
\nUsers
\nRight now - pre-Shibarium and the Shiba Inu Metaverse - SHIB's feature set doesn't really have a point of difference in the market.
\nUsers can:
\nSo what's the attraction?
\nIts meme status. Or better yet, its brand.
\nThink of it in terms of Nike and Adidas.
\nBoth sell running shoes that will do pretty much the same job.
\nBut each brand has loyalists that will go out of their way to purchase from them, and only them.
\nShib seems to have a similar allure to its users.
\nDevelopers
\nIf you're a developer, what do you want from SHIB?
\nHow about a large community of bull-headed users to build products for?
\nWell, you've got it.
\nAnd because Shib is built on Ethereum (the most popular and well supported smart contract platform out there), the learning curve should be softened for most blockchain devs out there.
\nOk, so what's the risk?
\nThe hype might die down and take the rabid community along with it.
\nInvestors
\nSo...this is where it all gets a little silly.
\nShiba Inu started out with a total supply of - wait for it - 1 QUADRILLION tokens.
\n410 trillion of which were sent to Ethereum co-founder, Vitalik Buterin's wallet (for free).
\n(The Shiba Inu founders most likely did so as a promotional tactic, 'look, the founder of Ethereum holds SHIB!')
\nVitalik, then proceeded to burn them all (the mensch!), which brought the total supply down ~590 trillion SHIB tokens.
\nSince then, the Shib burn portal has reduced that number down to ~589 trillion.
\nThe Shiba Inu blockchain doesn't create new SHIB tokens - meaning it has a fixed supply, so every time tokens get burnt, it has a permanent effect on the supply.
\nMeaning, if (IF!) demand for SHIB stays steady, the burn mechanisms should have a positive effect on price.
\nBut the burn is going to have to get a lot faster if it's going to impact the price.
\nImplementing the Shibarium base fee burning is a start, but for that to have an impact, a lot of transactions will need to be made consistently.
\nWhich means the Shiba Inu dev team is going to have to create a bunch of ways for its user base to spend/trade SHIB.
\nThe Shib Metaverse could be a big step in that direction (who knows).
\nBut the real problem is: there are always other meme coins popping up and taking attention away from Shiba Inu.
\n(Like Floki Inu, or Baby Doge).
\nBut hey - such is life, in the world of meme coins.
\nAnd that's why these things are so damn risky!
\nCommunityβ
Reddit: 478K
Twitter: 3.6M
Total: 4.07M
Competition (Dogecoin)
Reddit: 2.4M (β SHIB loses)
Twitter: 3.6M (β SHIB loses)
Total: 6M (β SHIB loses)
Competition (Floki Inu)
Reddit: 7K (β
SHIB wins)
Twitter: 422.3K (β
SHIB wins)
Total: 429.3K (β
SHIB wins)
Google search & CPC
\nHere's how popular SHIB, DOGE and FLOKI are, as far as Google Search volume and 'Cost Per Click' (CPC) to advertise goes.
\n(The higher the CPC, the higher the demand).
\nSHIB
βSearch volume: 673K
Keyword CPC: $0.65
DOGEβ
Search volume: 220K (β
SHIB wins)
Keyword CPC: $0.79 (β SHIB loses)
FLOKIβ
Search volume: 3,600 (β
SHIB wins)
Keyword CPC: $1.52 (β SHIB loses)
...ok, well that makes no sense.
\nMaybe we'll stop looking at these numbers from now on.
\nβ
\n\n
Honestly, as much as Shiba Inu looks like a joke at first glance, it really feels like the team behind it are working hard to build on the token.
\nIf the community sticks around into the next bull run, and the Shib team can deliver on their promises of the Shib Metaverse and Shibarium - we wouldn't be surprised to see the news of each launch push the token up 2x from where it is today.
\nIs it something we're confident of?
\nAbsolutely not.
\nBut it's not out of the realm of possibility.
\nβ
\n\n
The meme coin arena is a fickle space.
\nJust this past month there were stories of Baby Doge and Floki Inu outperforming Shib.
\nDo they offer more than Shib?
\nNo.
\nTheir meme power was just stronger in that moment of time.
\nAnd that's the problem.
\nFor all the work the Shiba Inu team are putting in to try and legitimize Shib, they're playing in an arena where internet fueled hype reigns supreme - and development is often overlooked.
\nSo what could go wrong?
\nThe hype dies down (or gets washed away in competition), and everyone forgets about Shib by the time the next bull run rolls around.
\nβ
\n\n
This is usually the part where we find a middle ground between our best and worst case scenarios...
\nBut this feels like we're throwing money down at the roulette table, more than it feels like a well considered investment.
\nAnd in roulette, there's no middle ground. You either win or lose.
\nSo as we said in the beginning: let's roll this dice...
\n(At the very least, we'll learn something).
\nβ
\n\n
Say no more! Here're are our down and dirty research numbers, collected at the time of this writing:
\n(Sources: CoinMarketCap, Keywords Everywhere and CoinGecko)
\nMarket stats
\nCurrent price: $0.00001308
Daily Trading volume: $257.86M
Market capitalization (market cap): $7.18B
All time high (ATH): $0.00007924
Team
\nAre they doxxed? No
\nAre they active? Yes
\nFundamentals
\nTotal Value Locked (TVL): $24.88M
Daily Active Wallets (DAWs): 14,645
Number of New Addresses (last month): ~12K
Total Decentralized Apps (Total dApps): Not Available
Max Supply: Initially 1 quadrillion, now 589 trillion.
Current Total Supply: 589 trillion
Features and Specs
\nTransactions Per Second (TPS): 13
Average Gas Fees: $3.26
Web & Community
\nReddit: 478K
Twitter: 3.6M
Total: 4.07M
Search volume: 673K
Keyword CPC: $0.65
The Competitionβ
β
βDogecoin
Competition (Dogecoin)
Reddit: 2.4M (β SHIB loses)
Twitter: 3.6M (β SHIB loses)
Total: 6M (β SHIB loses)
Search volume: 220K (β
SHIB wins)
Keyword CPC: $0.79 (β SHIB loses)
Floki Inu
\nCompetition (Floki Inu)
Reddit: 7K (β
SHIB wins)
Twitter: 422.3K (β
SHIB wins)
Total: 429.3K (β
SHIB wins)
Search volume: 3,600 (β
SHIB wins)
Keyword CPC: $1.52 (β SHIB loses)
We used Binance to purchase today's token, if you want to learn how to set up an account / make a purchase on Binance - click here.
\nAlright, that's it. Are you not edutained!?
\nβ
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