Shiba Inu has seen massive success throughout the year. Although currently, it is in a pullback price-wise, the dev team is hard at work. The devs unveiled the SHI stablecoin. We delve deeper into what it is and when it is going to come out.
SHI Stablecoin
Shiba Inu is far from the meme coin title it gained during the start and the better part of the year. The project has grown massively, and the ecosystem continues to expand. The SHI stablecoin is a toke that is always pegged to 1 cent ($0.01). Ryoshi aims to make SHI a global currency that common people can use worldwide. The founder of Shiba Inu aims to use SHI as both a method of payment and as a store of value.
Stablecoins are famous for pegging themselves to the dollar (fiat currency). Pegging reduces the volatility and maintains the price of the coins at or near $1. Ryoshi thinks pegging SHI to $0.01 will make the token more stable. He explains that since businesses will be using the stablecoin token, it will help them greatly.
Stablecoins have reserves. These reserves help them to remain stable. For SHI, Ryoshi has not explained how they will achieve stability with the $0.01 pegging. However, he did hint that they might lock up a certain amount of reserves. Then, they would mint SHI always to bring the price back to $0.01.
When Is SHI Stablecoin Coming Out?
No release dates were given for SHI. There is also no roadmap for it. The SHIBArmy will have to trust Ryoshi at his word. This will not be a problem since the founder has already delivered so much in just one year.
Ryoshi presented the need for SHI to show how decentralized SHIB was. Ryoshi and the team are also working on Shibarium, a layer-2 EVM chain. SHI would be the official stablecoin of the Shibarium ecosystem. For comparison, Binance Smart Chain (BSC) has Binance USD (BUSD), USDT on Solana, USDT on Tron and many more.
SHIBA INU is Decentralized
Ryoshi says that no one is in charge. This means no one is accountable or responsible. It also means no one has keys to the SHIB empire (contract). According to Ryoshi, it is the collective community that is responsible for the project. This put some sense of ownership and belonging to the SHIB holders and makes them hold on more to the project.
Bottom Line
It always comes down to price. SHIB is down 50% since its all-time high. The entire market is also down, with many top projects losing double-digit percentages in the last seven days. Some projects like Sandbox and Crypto.com continue to rally and defy the general market trend. On the other hand, Bitcoin is trading at $57k, way below the $98k predicted by PlanB. Will it still hit this mark in the week remaining to the end of November? Only time will tell.