Shiba Inu
Crypto Overview
Overview and Intended Utility
Shiba Inu was created in August 2020 as an Ethereum-based ERC-20 token, initially marketed as a 'Dogecoin killer.' The project has evolved to position itself as a decentralized ecosystem featuring a decentralized exchange (ShibaSwap), NFT platform, and various other utilities.
Business Model Analysis
The ecosystem includes multiple components: SHIB (the main token), LEASH (a rebase token), BONE (governance token), and ShibaSwap DEX. The project has expanded to include the Shibarium Layer-2 blockchain solution, launched in August 2023, aimed at reducing transaction costs and increasing scalability.
Actual Utility Assessment
Current real-world adoption shows mixed results. While the token has achieved significant market presence, much of its activity remains speculative. However, the launch of Shibarium has demonstrated genuine technological development, processing over 27 million transactions as of 2024, with over 1.3 million unique wallet addresses.
Token Distribution and Governance
Initial token distribution raised concerns due to large whale holdings, but significant tokens were burned, including 50% sent to Vitalik Buterin who burned 90% of his holdings. The remaining supply is distributed among various holders, with no single entity controlling a majority stake.
Development vs Marketing
The project has shown consistent development activity, particularly with Shibarium's launch and ecosystem expansion. However, marketing remains a significant focus, with heavy emphasis on community building and social media presence.
Revenue Model
The ecosystem generates revenue through transaction fees on ShibaSwap and Shibarium, avoiding traditional interest-based mechanisms. However, some DeFi features like liquidity pools require careful consideration from an Islamic finance perspective.
Crypto Impact
To assign a comfort level investing in Shiba Inu from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Shiba Inu.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
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