Shiba Inu is a decentralized Ethereum-based token named after a Japanese breed dog originated in the Chubu region.
SHIB was created in August 2020 as a decentralized token by an anonymous creator named Ryoshi. After launching Ryoshi gave 50% of all SHIB supply to Vitalik Buterin, creator of Ethereum. He donated part of his collection to the COVID-crypto relief fund and burned 410 trillion SHIB.
Unlike Bitcoin, which is essentially in deficit, SHIB is purposefully affluent. The volume in circulation is 1 quadrillion tokens.
Shiba Inu token ecosystem supports projects such as the NFT-art incubator and the development of a decentralized exchange called ShibaSwap.
As for now, ShibaSwap consists of two tokens – LEASH and BONES.
LEASH (DOGE KILLER) is an ERC-20 token. It was originally a rebase token but the developers removed the rebase to increase the potential of LEASH. It has a total supply of 107,646 and is used as a reward token.
BONE is a governance token that allows the #ShibArmy to vote on a ShibSwap. BONE has a total supply of 250,000 tokens.
Shiba Inu In Crypto Loans
The Shiba Inu crypto made its way to several cryptocurrency exchanges earlier this year. Due to its popularity and potential to make it to the moon, several renowned cryptocurrency platforms like Binance decided to list it.
Following its listing, however, the crypto token has had a relatively slow momentum. Is that a bad sign?
Arguably, not. Usually, cryptocurrencies with low market cap get listed, and nearly all early investors dump the token to cash out. Shiba Inu crypto is one of the few cryptocurrencies that managed to survive.
As a result, the Shiba Inu coin has gained massive success; with a considerable increase in market cap, the token is currency ranked at position #16 on CoinMarket Cap. Therefore, the Shiba Inu coin has found its place in the crypto space; with a massive and vibrant community, the Shiba Inu coin has enough validation to be used as a crypto loan collateral.
What is Shiba Inu?
Shiba Inu coin, just like Dogecoin and Floki Inu, is a meme coin; however, this doesn’t discredit them from being proper cryptocurrencies for buying and selling.
Dogecoin is the father of all meme coins, and these are coins that are considered to have gained tremendous popularity within a short period. For Instance, Dogecoin was created based on a meme that made rounds on the Internet back in 2013; however, Elon Musk popularized the coin to what it is today.
Shiba Inu coin, on the other hand, is an inspiration from Dogecoin. Ideally, if we concentrate on the Dog coins, Dogecoin would be the Bitcoin of the community, while Shiba Inu coin will be the Ethereum since they are the two most popular and dominant dog coins by market cap.
Shib crypto is inspired by a special and charming Shiba Inu dog, and in its Woofpaper, on their official website, the token is described as the “Dogecoin Killer.”
What is a Shiba Inu loan?
As much as the Shib crypto is popular, it hasn’t been accepted by several crypto enthusiasts. There are heavy critics of these meme coins that do not offer real-world solutions. The Shib crypto is one of the meme coins that haven’t been created to solve any financial or crypto-related problem; however, the token is part of several cryptocurrency portfolios due to its vibrant community.
CoinRabbit is the first crypto loans platform to accept Shiba Inu crypto to its massive family of cryptocurrency collateral.
Therefore, a Shiba Inu loan is a type of crypto loan offered to borrowers upon depositing the Shiba Inu coin as their loan collateral. CoinRabbit supports SHIB on Ethereum Blockchain Explorer (ETH) and Binance Smart Chain (BSC).
Today, CoinRabbit offers crypto loans at a 50% and 70 % LTV, meaning, for every $10 000 worth of Shib deposited, you get loan amounts of $5000 and $7000.
Why take a Shiba Inu Loan
Shiba Inu coin has been an excellent investment for some, while it has also burned a few investors who didn’t get in at the right time. Funny moments in crypto investing involve newbie investors who keep buying high and selling low. Such unpredictable market behaviour can be escaped by taking Shiba Inu loans.
However, investing in highly volatile cryptocurrencies like Shib crypto has been made simpler through the availability of Shiba crypto lending platforms like CoinRabbit. Here are some reasons you should take a Shiba Inu crypto loan.
- Crypto Hedging
When you take a Shiba Inu coin loan, you escape the crypto market risks. The loan amounts can be spent and repaid over a prolonged period, while your Shib crypto collateral appreciates.
- Enjoying the benefits of both worlds
A Shiba Inu loan allows you to enjoy the benefits of both crypto and stablecoins. You can use your loan amounts issued in stablecoins to trade other cryptocurrencies or even make other investments as your Shiba Inu collateral grows.
- Risk Management Technique
Shiba Inu loans provide crypto investors with an opportunity to manage their risks. Instead of holding Shiba Inu tokens for yourself and risking high market volatility that could see the prices plummet, you can manage your investment risks by using your investment as collateral.
How to work with SHIBs volatility to avoid liquidation?
Volatility is a difficult nut to crack for many crypto investors. It is one of the primary reasons some Shiba Inu crypto investors lose money. HODLing, while the dip continues to dip even further, is not easy. Often, new Shiba crypto investors sell at the wrong time due to fear of being wrecked. However, selling when the prices begin to dip is often a bad idea and leads to losses.
Shiba crypto volatility can lead to liquidation. When you use your Shiba Inu coin to take a loan, you should monitor your loan status. CoinRabbit offers an instant alert system, using messages to alert Investors in the event of a possible liquidation. Investors can always add more collateral to adjust their Liquidation price.
Loan collateral at CoinRabbit isn’t frozen; therefore, liquidation prices are adjusted immediately by adding more collateral or repaying your loan. However, once the Shib Inu coin loan collateral has been liquidated, the collateral cannot be repurchased since the collateral is automatically sold to secure the loan according to market volatility.
SHIB burning mechanism
On Apr 23, 2022 SHIBA launched their own burn portal – SHIB burn. Now burners can generate a passive revenue stream for burned SHIBs portal rewards users with different tokens.
In the first five days, holders burn 20 billion SHIBs. 2022 has already become a record-breaking year for the community since holders burn more coins than in all previous years.
Earlier 176 million coins were burned at a Christmas party in 2021 and 162 million coins were burned in February 2022.
According to the Shiba Inu burn tracker, holders burned 51% of the entire SHIB supply which is 410.34 billion coins.
CoinRabbit is planning to integrate Shiba Inu burning mechanism into crypto loans. SHIB burn will be available for opening and closing SHIB loans. So users will be able to burn their coins, get rewards and enjoy all the advantages that crypto loans have.
Steps to getting a Shiba Inu loan
Today, crypto loan platforms like CoinRabbit have significantly simplified the loan application processes. To get a Shiba Inu crypto loan today, all you need to do is go to CoinRabbit’s homepage and follow the steps below.
- On the homepage, under the Loan calculator section, select Shiba crypto as your preferred collateral. CoinRabbit supports SHIB (ETH) and SHIB (BSC). In the future, we are planning to support the entire Shiba Inu ecosystem and add Leash and Bone tokens. Stay tuned for the updates!
- Enter the amount of Shiba Inu crypto you want to deposit as collateral, and the Calculator will show you the Loan Amounts you will receive and Click “Get Loan.”
- After clicking “Get Loan,” we will ask you to confirm the details, enter your stablecoin address, and verify your phone number:
- Next, send Shiba Inu coins to the displayed address. After we receive your collateral, the loan will be sent to you immediately.
SHIB days on CoinRabbit
We’ve launched a special offer for ShibArmy. You can take a SHIB loan with lowered interest and a higher loan limit. The offer will be available until Sunday, June 5, 2022.
Don’t miss your chance!
Rethink forward crypto loans with CoinRabbit.
Not financial advice. Do your own research and take everything moderately. Crypto-backed loans have their own risks that should be taken respectively.
Sources used: Coinmarketcap.