Note: This is not financial advice. This is for educational purposes only. Please note that cryptocurrency is a highly volatile asset class; only invest what you can afford to lose.
Shiba Inu (SHIB), a new Dogecoin-inspired cryptocurrency launched last August, is now listed on Binance — the world's largest cryptocurrency exchange. This is a big win for Shiba Inu and its investors; the news heightens SHIB's visibility and offers more purchasing access to prospective buyers.
Thanks to Shibu Inu's Binance listing, the token surged by 114% in just 24 hours, according to CoinGecko's stats. On May 9, Shibu was trading at $0.000014. On May 10, the price skyrocketed to $0.000030. If you dropped $14,000 into SHIB on May 9, you would have doubled your investment the next day.
Shiba Inu gets Binance listing — a big win for SHIB investors
On May 10, Binance tweeted that it added SHIB to the platform, increasing the token's exposure and accessibility. "@Shibtoken is an experiment in decentralized community building and another meme coin similar to $DOGE," Binance said.
New #Binance listing: $SHIB @Shibtoken is an experiment in decentralized community building and another meme coin similar to $DOGE.Learn more ⬇️https://t.co/GUFENq3ncQMay 10, 2021
According to Shib Inu's official website, the founders boast that SHIB is the "Dogecoin killer," claiming that it is poised outpace Dogecoin's growth. Featuring the same canine-esque marketing as Dogecoin, SHIB is determined to outshine its rival.
Before it was added to Binance's arsenal, SHIB also scored a Crypto.com listing, but at the time, the Shiba Inu team encouraged investors to purchase SHIB on Uniswap. "There are some centralized exchanges that have listed SHIB, but [they] have a history of locking funds. If you can, it's safer to trade on a decentralized exchange like Uniswap or 1inch."
SHIB is an ERC-20 only token, which means that it runs on the Ethereum blockchain and uses its smart-contract technology. As such, prior to the Binance listing, in order to purchase SHIB, buyers had to purchase ETH (Ethereum's native cryptocurrency) and exchange it for SHIB on Uniswap.
Now you can purchase SHIB on Binance, but unfortunately, it's not any less convoluted. According to the Binance website, you either have to purchase Binance USD (BUSD) or Tether (USDT) before you can swap it for SHIB.
Binance issued a warning to its users after the Shib Inu listing, reminding investors that the meme token is a highly speculative asset: "SHIB is a relatively new token that poses a higher than normal risk, and as such will be likely subject to high price volatility after the Binance listing."
As with any investment, if you plan on diving into the SHIB crypto craze, do your own research about SHIB's mission and fundamentals so that you fully understand what you're getting into. Make sure to exercise sufficient risk management: only invest what you can afford.