Shiba Inu looks to brings utility to its token
Just 24 hours after Shiba Inu’s decentralized finance offer ShibaSwap launched, the platform surpassed $1 billion in total value locked (TVL). Arguably pushing Shiba Inu out of meme token territory.
The Shiba Inu token was created anonymously in August 2020 and quickly gained traction and value as a community of investors was seemingly fascinated by the cute Akita dog token. Helped along by headlines and Tweets from personalities like Elon Musk, CEO of Tesla, and Vitalik Buterin, the founder of Ethereum. Fast forward almost a year and the project is looking to shake off the meme coin discourse by launching its own DeFi offer. Featuring a token swap service, yield farm, and decentralized autonomous organization structure (DAO).
The launch of ShibaSwap just under a week ago resulted in a noticeable uptick in gas costs because of the excitement in the Shiba community. According to data from EtherScan, the day the DEX launched, three SHIBA-related contracts combined generated more than $1.7 million in fees.
Additionally, Shiba Inu had a total value locked surpassing $1 billion just one day after its launch. According to data provided by the token swap platform on Twitter. Overall, the platform is offering similar yield farming and earning opportunities as other DeFi applications and we would implore close research and due diligence before embarking upon anything.
This reaction, not only from the Shiba community but wider stakeholders is a strong indication that Shiba Inu could and now arguably has moved from its meme coin status to a serious DeFi platform. Moreover, the platform is attempting to prove that it has a tangible use case. As arguably shown by a DEX that now holds more total value than known DeFi players like QuickSwap on Polygon and Belt Finance on Binance Smart Chain.
Meme currencies, fuelled by the increasing popularity of DOGE, are among the fastest expanding segments of the cryptocurrency industry. The rise of meme currencies seems to be an ambiguous concept for the whole sector. While meme coins are appealing to novice cryptocurrency investors, they also subject them to significant dangers.
A few days after the launch, platform analyst DeFi Safety published a report on ShibaSwap. The platform scored just 3%, far below the 70% level the site considers a pass. Describing it as “a devastating fail,” DeFi Safety failed ShibaSwap on just two of its 22 review criteria, with the protocol scoring 30% for the clarity of information provided in its white paper.
The review’s author is Rex Hygate, the founder of SecuEth and Caliburn Consulting. He highlighted ShibaSwap’s anonymous team, lack of transparency and documentation, and pointed to the fact there is no public software repository, development history, or way to test the code.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in ETH, BTC, ADA, NIOX, AGIX, SAFEMOON, SDAO, CAIT, CAKE, LINK, GRT, CRO, SHIBA INU, AND OCEAN.