Shiba Inu (SHIB) is a type of cryptocurrency belonging to the 'meme coin' group, created in August 2020 by an individual or anonymous group with the nickname 'Ryoshi.' Inspired by the Shiba Inu dog breed of Japan, SHIB quickly became an icon in the cryptocurrency community, even being dubbed as the 'Dogecoin killer' thanks to creative strategies and strong community support. Overview of SHIB and its supply When it first launched, Shiba Inu had a massive total supply of 1 quadrillion tokens. In a surprising move, Ryoshi sent half of this supply to Vitalik Buterin's wallet, the founder of Ethereum. Vitalik then: Contribute a large portion of tokens to the COVID-19 relief fund in India. Burn the remaining portion, significantly reducing the circulating supply of SHIB. Currently (on November 23, 2024), the total supply of SHIB has decreased to 589.51 billion tokens, with 589.26 billion in circulation. The token burning process is still ongoing to reduce the supply and support the long-term value of SHIB. Price fluctuation history SHIB has experienced impressive price increases, especially in 2021 when the coin attracted a FOMO (Fear of Missing Out) frenzy from investors. The value of SHIB skyrocketed due to: Viral effects from famous individuals: Elon Musk, who frequently mentions "meme coins", has indirectly boosted the popularity of SHIB. Community Power: SHIB builds a strong community with millions of investors and supporters across the globe. However, the price of SHIB is also highly volatile and heavily dependent on market sentiment, making it a risky but potentially profitable investment. Shiba Inu Ecosystem: A More Sustainable Direction To reduce its dependence on psychological factors, Shiba Inu has constantly expanded its ecosystem with breakthrough projects: Shibarium: This is a Layer 2 solution on Ethereum, helping to improve transaction speed and reduce fees. Shibarium opens up more practical applications for SHIB, from small transactions to more complex activities in the decentralized finance (DeFi) field. ShibaSwap: Shiba Inu's DeFi platform allows users to trade tokens, provide liquidity, stake, and earn rewards. Shib: The Metaverse: Shiba Inu's Metaverse project is developing use cases related to NFTs, blockchain games, and virtual space. This helps SHIB not only be a 'meme coin' but also become part of the future technology trend. Token burn: The token burning process takes place regularly to reduce the circulating supply, thereby increasing the long-term value of SHIB. Risk and investment potential Despite significant efforts to build real value, SHIB is still a high-risk investment. The reason: Market psychology: The value of SHIB still depends heavily on the community and support from celebrities. Large fluctuations: SHIB can bring in large profits, but it is also vulnerable to manipulation, causing investors to face the risk of losing everything. Lack of strong practical applications: Despite the developing ecosystem, SHIB still needs more time to prove its sustainability and real value in transactions. Investment advice Don't put all your eggs in one basket: Only allocate a maximum of 10% of your investment capital to SHIB, as it is a high-risk asset. Monitor positive signals: Wait for important milestones such as the expansion of real-world applications, recognition from major organizations, or the outstanding development of projects like Shibarium. Diversify your investment portfolio: In addition to SHIB, investors should consider other assets with more stable growth potential. Conclusion Shiba Inu (SHIB) is not just a meme coin but also a testament to the power of community and innovation in the world of cryptocurrency. Despite the risks, SHIB's progress in the blockchain ecosystem and efforts to reduce its supply indicate a move towards sustainability. With a sound investment strategy, SHIB can be a potential choice for investors willing to take risks.