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In just one month, an Ethereum based Dogecoin ripoff, Shiba Inu (SHIB), prices surged by more than 61,000%. However, in the last 48 hours, the self-applied moniker of ‘dogecoin killer’ gained almost 1,000pc ahead of Binance and FTX announcing their plans to create space for SHIB.
According to CoinMarketCap’s analysis, the cryptocurrency made its way to the top 20 rankings in less than two days. The market price of the SHIB token rose from as low as $0.000003 to $0.000032, translating to a 966% rise. Its rising cost also transpired to cryptocurrency growth to over 2,300,000% since the beginning of 2021.
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On 9th Monday morning, Binance made some breaking news with a new listing SHIB in an innovation zone, one of its high-risk trading features. That accelerated the token’s valuation more than double in 48 hours.
Meanwhile, FTX included the token as full-fledged crypto, with inclusivity of spot markets and perpetual features to exchange with it. After SHIB listing on Binance, people criticised Binance CEO Changpeng Zhao move, basing the argument on their own beliefs that SHIB was just a Dogecoin ripoff.
In a Tweet, Zhao replied to the critics stating that binance intentions answer the rising demand of the cryptocurrency from customers who needed its availability for trading.
Zhao also added that exchange provides a neutral ground for its users to carry out their trading business. Shiba Inu website claims about 50% of its token supply has been looked into Uniswap to provide liquidity. The remaining 50% credited to Ethereum co-creator Vitalik Buterin as a ‘Burn’ gesture.
Buterin’s public wallet has over 500Tr SHIB tokens that are valued at $15 billion. That exceeds the value of his Ether that is now worth $1,3 billion. It is not the first time Buterin wallets have received uninvited donations of Dogecoin imitations.
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However, SHIB’s prices are still up and roughly 110% today and more than 1600% higher than last week. Binance exchange has simultaneously launched 1000SHIB and perpetual futures contracts on USDT-margin with a leverage of up to 25x following a tweet.
Futures are financial derivatives contracts that allow users to trade with certain assets at a predetermined price on a specific date in the future. Investors can speculate on future prices by setting a strike price of an investment. When the actual cost turns out to be high on contract expiry dates, the traders earn a profit and vice versa. The same case happens to the perpetual futures, and investors can hold on to a position indefinitely.
Binance announcement stated that “Shiba Inu is an experiment in decentralised community building and another meme coin with similarities to dogecoin.” “It will also be the first token to get listed and used as an incentive for using ShibaSwap, a decentralised exchange,” they stated.
The rapid rise of SHIB’s market price remains a puzzle to even some veterans in cryptocurrency environments. In a tweet by Anthony Sassano, ETHHub co-founder stated that “276 days ago somebody who invested 10ETH into SHIB is now worth $460 million. How is your life going?”
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