Memecoin SHIB token gains traction after being listed by Chinese exchanges OKEx and Binance on May 8 and 10, 2021, respectively. The token’s value doubled on another large Chinese exchange, Huobi, which was already offering the asset.
SHIB’s price pump occurred due to the token’s cheap price, according to Colin Wu, a well-known crypto blogger. ‘The price pump is made possible because this token is so cheap that even a single retail investor can buy a few tokens with no trouble. There is a mood that people believe its price [would] go up,’ he said. As of writing, a SHIB coin’s price is currently at $0.00002088.
According to senior analyst at OKEx Rick Delaney, SHIB’s performance reflected user’s attraction to canine-themed coins. ‘SHIB’s price performance over the weekend clearly shows that the crypto industry hasn’t had its fill of canine-themed meme coins just yet,’ he said.
Meanwhile, research head at crypto exchange AAX Ben Caselin said that the surge of people investing in the asset is also a sign of the wide-scale adoption of crypto assets.
‘Rather than simply dismissing the hype outright, it’s important to realize that what we’re seeing is the mass movement of traders new to crypto moving into the space,’ said Caselin.
The SHIB token was developed by an anonymous person called Ryoshi and released in August 2020 as a more ‘community driven’ alternative to Dogecoin.
According to the official website of SHIB, the asset’s price ‘can remain well under a penny and still outpace dogecoin in a small amount of time’.
‘SHIB is an experiment in decentralized spontaneous community building. BONE is our next token,’ according to the website. The SHIB website also said that 50% of the SHIB supply is locked in an AMM or Automated Market Maker called Uniswap.
‘We locked the 50% of the total supply to Uniswap and threw away the keys. The remaining 50% was burned to Vitalik Buterin and we were the first project following this path, so everyone has to buy on the open market, ensuring a fair and complete distribution where devs don’t own team tokens they can dump on the community’.
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