What Is Shiba Inu & How Does It Work? Who Created SHIB?

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Shiba Inu (SHIB) has emerged as one of the most talked-about cryptocurrencies in the decentralized ecosystem. Born from the meme-inspired wave of digital assets, SHIB has evolved into more than just a novelty—it's a community-driven experiment in true decentralization. Unlike traditional crypto projects with centralized leadership, Shiba Inu was launched with no official team, no funding, and no roadmap beyond empowering its global community.

The Origins of Shiba Inu

Launched in August 2020 by an anonymous founder known only as Ryoshi, Shiba Inu set out to challenge the norms of blockchain development. In a bold move, Ryoshi sent 50% of the total 1 quadrillion SHIB supply to Ethereum co-founder Vitalik Buterin—effectively removing that portion from circulation. The remaining half was locked into Uniswap, a decentralized exchange, to ensure liquidity without centralized control.

This gesture wasn’t just symbolic—it reinforced the project’s core philosophy: true decentralization through community ownership. Buterin later burned 90% of his SHIB holdings (worth around $6.7 billion at the time), further reducing supply and reinforcing market confidence. The remaining 10% was donated to an India-based COVID-19 relief fund, underscoring how crypto can drive real-world impact.

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How Does Shiba Inu Work?

SHIB is an ERC-20 token built on the Ethereum blockchain, meaning it leverages Ethereum’s robust infrastructure for transactions and smart contracts. While initially seen as a "Dogecoin killer," Shiba Inu quickly expanded its vision beyond memes into decentralized finance (DeFi) and non-fungible tokens (NFTs).

At the heart of its ecosystem is ShibaSwap, a decentralized exchange (DEX) that allows users to trade, stake, and earn rewards. Through ShibaSwap, token holders can:

The network also introduces two additional flagship tokens:

Why Ethereum Matters

Since SHIB runs on Ethereum, it benefits directly from upgrades like ETH 2.0, which transitions the network from energy-intensive Proof of Work (PoW) to efficient Proof of Stake (PoS). This shift promises faster transactions, lower fees, and improved scalability—key advantages for platforms like ShibaSwap aiming to compete with top-tier DeFi exchanges.

Who Created Shiba Inu?

The identity of Shiba Inu’s creator remains unknown. Ryoshi, the pseudonymous founder, has consistently emphasized that the individual behind the project is irrelevant. In a now-famous Medium post from May 2021, Ryoshi wrote:

“I am nobody. I am not important… I am just some guy of no consequence tapping at a keyboard, and I am replaceable.”

This ethos reflects the project’s foundation: the community is the product. There is no CEO, no corporate structure—only a global collective known as the Shib Army, united by a shared belief in decentralization.

Despite this anonymity, speculation persists. Some Reddit users have pointed to clues suggesting ties between Ryoshi and members of the Ethereum development team, citing photos of Vitalik Buterin in Japan with Karl Floersch, an Ethereum researcher. However, no concrete evidence supports these claims.

What Makes Shiba Inu Unique?

Several factors distinguish Shiba Inu from other meme-inspired cryptocurrencies:

As stated in the project’s Woofpaper, “collective decentralization” can build something far greater than any single team could achieve alone.

What Gives Shiba Inu Value?

While meme coins often face skepticism, SHIB derives value from multiple sources:

Additionally, LEASH’s extremely low supply creates high-demand dynamics, while BONE’s role in governance incentivizes long-term holding.

How Many SHIB Coins Are in Circulation?

The total supply of SHIB is capped at 1 quadrillion, with approximately half currently in circulation after Buterin’s burn. Of the remaining:

Market data shows SHIB consistently ranks among the top cryptocurrencies by market cap and trading volume. Its accessibility—trading at fractions of a cent—allows micro-investors to hold millions or even billions of tokens, fostering broad ownership.

How Is the Shiba Inu Network Secured?

Security relies on two layers:

  1. Ethereum’s Blockchain: As an ERC-20 token, SHIB inherits Ethereum’s battle-tested security model.
  2. Staking Mechanism: Future security enhancements will come through ShibaSwap staking, where participants lock up tokens to support network operations and earn BONE rewards.

Once fully operational, the PoS-based system will make attacks economically unfeasible while rewarding honest participation.

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How to Use Shiba Inu

Beyond trading, SHIB offers several use cases:

Choosing a Wallet for SHIB

You can store SHIB in:

Always choose reputable providers with strong security records. For ease of use and integrated trading features, many opt for exchange-hosted wallets—though self-custody remains the most secure option.


Frequently Asked Questions (FAQ)

What is Shiba Inu (SHIB)?

Shiba Inu is a decentralized cryptocurrency launched in 2020 as an ERC-20 token on Ethereum. It aims to create a community-driven alternative to centralized financial systems.

Is Shiba Inu a good investment?

SHIB offers high-risk, high-reward potential. Its low price per token allows broad participation, but value depends heavily on adoption, utility development, and market sentiment.

Can you mine SHIB?

No. All 1 quadrillion SHIB tokens were minted at launch. Instead of mining, users earn rewards through staking on ShibaSwap.

What is BONE used for?

BONE is the governance token for the Shiba Inu ecosystem. Holders can vote on proposals and influence platform development.

How do I stake SHIB?

Once ShibaSwap is fully live, users can stake ("bury") SHIB to earn xSHIB and receive rewards in BONE tokens plus a share of transaction fees.

Where can I buy SHIB?

SHIB is widely available on major exchanges including OKX, Binance, and Coinbase. Always verify platform security before purchasing.

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Core Keywords: Shiba Inu, SHIB, decentralized finance, ERC-20 token, ShibaSwap, BONE token, community-driven cryptocurrency, Ethereum blockchain