A cryptocurrency other than Bitcoin called Shiba Inu (SHIBUSD) is built on Ethereum and has the Shiba Inu, a Japanese hunting dog breed, as its mascot. Shiba Inu is frequently mentioned as a Dogecoin substitute; in fact, its proponents refer to it as the Dogecoin killer.
Shiba Inu and Dogecoin are two instances of meme coins. Meme coins are digital currencies associated with a certain topic, in this case, the Shiba Inu dog. Meme coins are typically introduced as inside jokes or parodies rather than as useful digital products. Unlike Dogecoin, which was introduced in December 2013, Shiba Inu was developed in August 2020 by an unidentified person or group called Ryoshi.
The Shiba Inu Ecosystem
The following three coins make up the Shiba Inu ecosystem:
SHIB: Shiba Inu: This serves as the project's primary unit of exchange. Starting with a supply of 1 quadrillion, or 1,000 trillion, Ryoshi gave half to Ethereum co-founder Vitalik Buterin for storage and then locked half in Uniswap for liquidity reasons. When India was suffering from the Delta version of the coronavirus in May 2021, Buterin sent the country more than 50 trillion Shiba Inu coins, which were then worth over $1 billion, to a COVID-19 relief fund there. Shortly after, Buterin added 40% of the whole supply of Shiba Inu to a so-called "dead wallet," or permanently deleted it from circulation.
Leash (LEASH): Leash is the second token in the Shiba Inu ecosystem and symbolizes the opposite end of the ecosystem's spectrum with a total supply of just 107,646 tokens as opposed to the billions of Shiba Inu tokens.
Bone (BONE): With a total supply of 250,000,000 tokens, Bone falls in the middle of the other two tokens in terms of its supply in circulation. On subsequent proposals, the SHIBArmy will be able to vote using it as a governance token.
ShibaSwap: ShibaSwap is a DeFi platform that aims to offer a secure cryptocurrency trading environment while remaining decentralized. The best site to purchase and sell SHIB and LEASH is on ShibaSwap.
Shiba Inu Incubator: The incubator looks for ways to value originality and ingenuity while refocusing attention away from well-known artistic forms including painting, photography, and computer portrayal.
Shiboshis: They are non-fungible tokens (NFTs) created by 10,000 Shiba Inus and recorded on the Ethereum blockchain. Each Shiboshi has a unique set of characteristics that makes it collectible.
Understanding Shiba Inu (SHIB)
A "woof paper"—possibly a play on the word "white paper"—that is accessible on the ShibaToken.com website lays out the fundamental principles of the Shiba Inu ecosystem.
The article claims that Shiba Inu was created as a response to the following straightforward query: "What would happen if a cryptocurrency project was 100% managed by its community?" Ryoshi, the organization's founder, explains that it began as an "experiment in decentralized spontaneous community creation." Ryoshi asserts that collective decentralization has the ability to forge stronger bonds than a centralized team could possibly manage.
The SHIBArmy's base of more than 500,000 members upholds its founding tenets, which are:
The project started from scratch, with nothing, in the spirit of building something from nothing;
It was not established on the foundation of an already established group or pre-formed team; and
A professed love of Shiba Inu dogs.
Being an ERC-20 token based on Ethereum, Shiba Inu was created on and is hosted on the Ethereum blockchain rather than its own blockchain. The Shiba Inu ecosystem was built on Ethereum because, as Ryoshi said in the paper, it was already secure, and dependable, and allowed the project to keep its decentralized nature.
Shiba Inu joins Bitcoin and Ethereum as the most popular cryptocurrencies in 2022.
Numerous other types of assets have entered the cryptocurrency market throughout time. Most, however, fell short of rivaling well-known cryptocurrencies like Bitcoin [BTC] or Ethereum [ETH]. As its ubiquity increased, the meme coin Shiba Inu [SHIB] changed this story. The product was well-liked even if its worth dropped somewhat this year.
The biggest cryptocurrency exchange in the world, Binance, tweeted about the cryptocurrency that will be most popular in 2022. It was anticipated that BTC and ETH would be on the list. But the presence of the Shiba Inu caught a lot of people off guard. But the Shib Army was jubilant. Clearly, 2022 was a very important year for Shiba Inu. The network generated a lot of buzz with the launch of its own video game and a restaurant with a SHIB theme.
Alongside this, network developers could be observed making fun of the locals regarding Shibarium. The SHIB network started a surprise countdown earlier today. While many people thought this countdown had something to do with Shibarium, several people disagreed. The countdown had reached 14 hours, 45 minutes, and 11 seconds at this point.
Shiba Inu holding count clears the way for healing
After this year's holder count significantly increased, a decline in the total number of unique addresses began in December. However, the Shib Army was once more seen seeking to raise its numbers before 2022 came to an end. The number of addresses on SHIB at the time of publication was 1,268,344, which was a record high for the network.
As was already established, despite the asset's price is in freefall, Shiba Inu's popularity did not change. SHIB is currently trading 90.34 percent below its October 2021 $0.00008845 record high.
Shiba Inu was selling for a low of $0.000008537 at the time of publication, with a daily increase of 3.19 percent. In light of this, numerous members of the community pointed out that SHIB may be on level in terms of popularity with BTC and ETH. However, it was extremely doubtful that the price of the meme coin would ever reach those levels, at least anytime soon.
The unstable cryptocurrency market was shaken by the demise of FTX; it lost billions in value and fell below $1 trillion.
The fallout from FTX's abrupt slide and collapse will probably affect cryptocurrencies for a very long time to come and hurt other markets as well. Sam Bankman-Fried is accused in a class-action lawsuit filed on November 16 in a federal court in Florida of developing a fraudulent cryptocurrency scheme intended to take advantage of uneducated investors from all over the nation. Steph Curry, Shaquille O'Neal, Shohei Ohtani, Naomi Osaka, Larry David, and Kevin O'Leary are among the other famous people included in the case as people who allegedly assisted Bankman-Fried in carrying out the scheme.
The FTX bankruptcy has an effect on Genesis Global Capital, the Gemini cryptocurrency exchange, and BlockFi, a platform for crypto financing with substantial exposure to FTX. Due to FTX's bankruptcy on November 16, the lending division of cryptocurrency investment bank Genesis halted redemptions and new loans. Following the information, Genesis, a lending partner in Gemini, the cryptocurrency exchange founded by the Winklevoss twins, announced delays in withdrawals from its Earn product. BlockFi, a cryptocurrency lending company with substantial exposure to FTX, stopped allowing withdrawals and declared bankruptcy on November 28.
On November 18, the Bahamas Securities Commission assumed authority of the bitcoin holdings of the defunct exchange FTX. The U.S. House Financial Services Committee announced that it will hold a hearing on the FTX collapse in December 2022.
As part of the most recent development in the FTX affair, Reuters reported on December 6 that Bankman-Fried had retained white-collar defense lawyer Mark S. Cohen. In the sex trafficking trial that resulted in Ghislaine Maxwell's conviction on many counts, Cohen, a former assistant US attorney for the Eastern District of New York, represented her on behalf of Cohen & Gresser. Additionally, Caroline Ellison, who oversaw the trading company Alameda Research, has retained the legal services of Washington-based Wilmer Cutler Pickering Hale and Dorr.
Few rules that could avoid FTX’s demise
The FTX failure has made it clear that a sizable portion of the digital asset market thrives in regulatory grey areas and jurisdictional gaps, which makes the need for new rules and regulations even more pressing. Nevertheless, a lot of experts concur that despite being mainly outside of US jurisdiction due to its offshore location, FTX might have avoided failure if only certain tried-and-true guidelines had been followed. According to Carla Reyes, an associate professor of law at the SMU Dedman School of Law, FTX is a centralized corporation like any other corporate business. It wasn't a case of the regulations not being in place. It was an instance where they disobeyed them. Five topics have come to light as being essential for Congress and regulators to concentrate on in interviews with securities professionals and remarks from politicians and regulators.
1. Commingling of Assets
The inability to secure consumer assets lies at the heart of a series of crypto mishaps. The most severe example may be FTX, which used client cash to lend to its sister business, the hedge fund Alameda Research, to support dangerous investments.
In order to guarantee that customer assets are walled off in the event that a brokerage business collapses, the US Securities and Exchange Commission already has a consumer protection provision. The business has resisted filing with the government, arguing that tokens are not securities subject to the agency's regulations, therefore crypto client accounts are not protected.
Gary Gensler, the hated chairman of the SEC, disagrees with crypto fans. The same was true of Jay Clayton, his predecessor during the Trump administration. Both would use a criterion from a 1946 ruling by the US Supreme Court, which said that an asset falls under the SEC's purview when investors contribute funds to a business with the goal of benefitting from the leadership of the organization. Almost all tokens are now considered securities by the SEC.
According to James Cox, a professor specializing in business and securities law at Duke University School of Law, establishing that the majority of cryptocurrencies are securities is arguably the most significant action Congress could take.
Additionally, mixing client money is prohibited by the Commodity Futures Trading Commission, which currently regulates some crypto derivatives. But rather than commodities, its regulations apply to swaps and futures. Despite the fact that the majority of experts believe that Bitcoin is a commodity and not a security, no federal regulator currently controls crypto commodities, necessitating a congressional remedy to safeguard investors.
2. Separate Business Lines
To the disadvantage of their clients, several cryptocurrency businesses have provided a wide range of products and services that obscure the distinctions. The most notable example is cryptocurrency exchanges. The platforms carry out a wide range of tasks, including market-making, trading, custody, and securities lending. The arrangement, according to critics like Gensler, is fraught with problems. Contrarily, conventional financial institutions that offer many services normally register each of their distinct business lines with the relevant regulators. That also has to be done for crypto, according to experts.
3. More Disclosure
The foundation of financial regulation in US markets is risk disclosure. In crypto, however, disclosures are practically nonexistent. There are hardly any details available on the dozens of FTX offices outside the US. The American division, FTX US, is more understood, but there are still a lot of unknowns because it was a closely held private firm.
Existing SEC regulations for investment advisors and securities issuers would lessen the opaqueness of cryptocurrency, but Congress may need to strengthen them. In order to determine if programmers may, for example, influence token pricing, SMU's Reyes adds, "I'd like to know more about the code that produced the tokens."
Congress has been urged by a few state securities authorities to tighten disclosure rules for businesses valued at $700 million or more. While not crypto-focused, such a measure could have given investors a peek inside the crypto giants. Another option would be to treat crypto platforms like stock exchanges, which have their own registration and reporting requirements.
4. Advertising Standards
Although unrelated to cryptocurrencies, such a policy may have allowed investors to see inside the industry's titans. The treatment of cryptocurrency platforms similar to stock exchanges, which are subject to different registration and reporting requirements, is one alternative.
Crypto companies like FTX have prospered by luring throngs of commoners through glitzy advertisements, frequently including well-known celebrities like Tampa Bay Buccaneers quarterback Tom Brady and actor Matt Damon. Over 112 million people watched the Super Bowl in February when FTX and other cryptocurrency businesses broadcast advertisements.
Individuals cannot promote stocks without revealing payment information thanks to SEC regulations. The organization has utilized its power to punish celebrities for promoting cryptocurrency, including Kim Kardashian.
However, whether or not the token is regarded as security will affect these activities. The Federal Trade Commission, which regulates false or deceptive advertising, might also take enforcement action.
5. Corporate Governance
One of FTX's most startling flaws was the complete absence of corporate governance. The person in charge of FTX at the moment, John Ray III, gave the Delaware court in charge of the firm's bankruptcy proceedings the advice not to believe any of its financial statements. He said that most FTX organizations never conducted board meetings.
Last month, Erica Williams, the head of the US accounting watchdog, issued a warning that the US cannot inspect the audits of privately held crypto firms like FTX. Williams is essentially telling investors to exercise caution and ask more questions of crypto vendors. And they should be on high alert if they don't receive satisfactory responses.
