The hype surrounding Dogecoin has inspired numerous competing projects. Right at the front: Shiba Inu, named after Doge’s heraldic animal. We compared the two coins and looked to see which shitcoins are still booming on four legs.
The former fun project Dogecoin (DOGE) has become bitter serious since Elon Musk’s public rifle aid. The fact that Coinbase, the largest US Bitcoin exchange, has now announced that it will list Dogecoin has further fueled the hype surrounding Memecoin. Meanwhile, numerous Memecoins romp around in the cryptoversum, and beg for investments, especially on Ethereum-based, decentralized exchanges (DEX) such as Uniswap or offshoots of the same on the semi-decentralized Binance Smart Chain (BSC). While Dogecoin still plays in a league of its own with a market capitalization of around 70 billion US dollars, the Shiba Token (SHIB) is currently trying to mark its territory in the crypto space.
Shiba Inu: Use Case
In addition to the obvious “Number go up” use case that is typical for Memecoins, SHIB should also play a role in its own DeFi ecosystem, which is currently still being developed. ShibuSwap – the name of the umpteenth Uniswap clone – is currently going through the latest security tests and updates, according to the Shiba Token Project homepage. With the launch of ShibuSwap, it should then be possible to stake SHIB (“Bury”) and receive a staking reward in the form of BONE, another Shitcoin that is still awaiting publication. Liquidity mining (“Dig”) should also be possible. But not for the Exchanges: The “Woof Paper” of the project indicates that there should be no payouts of staking rewards to wallet addresses of centralized Bitcoin exchanges.
Dogecoin use case
Dogecoin was created in late 2013 as a tongue-in-cheek response to the burgeoning Bitcoin hype. A year later, a PR stunt by the Dogecoin community caused a stir. As part of a fundraising, the Dogecoin community raised 26 million DOGE (then 25,000 USD, today around 12 million USD) to send the Jamaican bobsleigh team to the Winter Olympics in Sochi. Nevertheless, the main use case of Dogecoin remains payment. There are hardly any retailers who accept Dogecoin, but Doge can be used for tips on social networks, for example. Even Tesla CEO Elon Musk recently flirted with the possibility of one day accepting Dogecoin as a means of payment.
Token economy Shiba Inu
In total there are 1,000,000,000,000,000 units of the token, which ekes out its existence as an ERC-20 token on the Ethereum blockchain. Shiba Inu’s anonymous development team transferred half of it to Ethereum co-founder Vitalik Buterin. The reason: “There is no size without a vulnerable point and as long as VB does not pull the rug from under our feet, SHIBA will grow and survive”. Without further ado, Buterin gave over 50,000,000,000,000 SHIBA to an Indian organization donatedwho has favourited crypto funds to fight Covid-19.
The other half was paid into liquidity pools on Uniswap, with the developers claiming to have “thrown away” the associated private keys. This cannot be verified, so you have to trust the team here. In addition to SHIBA, there is a second token with LEASH, which, in contrast, is limited to only 107,647 units. The ERC-20 token was originally linked to the Dogecoin course, but the link has now been removed. In addition to BONE and SHIBU, LEASH is to play a central role in staking and liquidity mining in the planned DEX ShibuSwap.
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Dogecoin token economy
Dogecoin is notorious for having a rapidly growing supply. There are 129,596,729,140 units at the time of writing. 10,000 DOGE are mined per minute, calculated on an annual basis that makes over five billion DOGE. Scarcity is different, but after all, Doge was never designed as a store of value. If DOGE’s current rate of creation is maintained, inflation will of course be much less significant in the coming decades.
Much more serious, however, is the centralization of capital. A single address owns 28.35 percent of all DOGE units. 45 percent of the Doge supply is controlled by ten addresses. This means that small holders are exposed to a massive risk of dumping.
Conclusion: Shiba and Doge – better than playing the lottery, but nothing more
For SHIBA and DOGE, both parabolic rallies and sharp setbacks are not uncommon. Dogecoin achieved a price increase of over 20,000 percent in one year and has risen by 465 percent in the past 30 days. SHIBA is not yet a year old, but has an impressive balance sheet with a monthly growth of 12310.5 percent. Both coins are ideal for gaming, but you shouldn’t entrust your retirement savings to a Memecoin. In the case of Dogecoin, you would surrender even more to the whims of the whales and with SHIBA you have to reckon with the fact that the coin will soon disappear from the scene again.
After all, there are plenty of self-proclaimed Dogecoin killers, as the portfolio below impressively shows:
There is nothing that does SHIBA better than other shitcoins like Akita Inu, Hokkaido Inu, Dogelon, Cryberdoge, Unidoge, Doberman and whatever they are called – at most marketing on social networks. And here all Dogecoin epigones are panting miles after the original with his chief advertiser Elon Musk.
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