Shiba Inu (SHIB): tokenomics, risks and score
An Ethereum memecoin that grew into an ecosystem, with its own layer 2 network, a decentralised exchange and a burn mechanism.
What Shiba Inu is, and what it does
This is a memecoin. It has no product, no revenue and no mechanism producing value. It is worth what attention makes it worth, which is the whole proposition and should be understood before buying.
What the SHIB token itself does: Transactions on its layer 2 burn SHIB, and various partner integrations contribute to burns. The burn rate is small relative to the enormous outstanding supply.
Where it runs: Ethereum. Mechanism: ERC-20 token on Ethereum. It has been running since 2020, so roughly 6 years.
The facts
- TICKER
- SHIB
- SECTOR
- Memecoins
- CHAIN
- Ethereum
- LAUNCHED
- 2020, so around 6 years of operating history
- MECHANISM
- ERC-20 token on Ethereum
- MAXIMUM SUPPLY
- 1 quadrillion initially, roughly 41 percent burned at launch
- VALUE CAPTURE
- Buyback burn
- UPGRADE CONTROL
- Team controlled
- VESTING
- Complete
- LIQUIDITY BAND
- Mid cap. Listed on most major venues. Depth thins quickly above modest size.
How the score breaks down
Each dimension is explained on the directory page, and the reasoning behind it is taught in the Academy research process.
Supply and value capture
A hard maximum supply that cannot be raised without the agreement of essentially every participant. Fees are used to buy and destroy supply, so usage reduces the number of tokens outstanding.
Transactions on its layer 2 burn SHIB, and various partner integrations contribute to burns. The burn rate is small relative to the enormous outstanding supply.
The founding team retains control over upgrades or parameters. Ownership is heavily concentrated. A small number of wallets hold enough to determine the price on their own.
Where it is strong and where it is not
- Has operated for around 6 years and through at least one full bear market
- Supply is capped, so holders are not diluted indefinitely
- The token captures real protocol revenue rather than relying on speculation alone
- Audited, with published reports
- Heavily concentrated ownership means a few wallets control the outcome
- Upgrade control sits with a small group, so the rules can change
Incident history
No major exploit, collapse or regulatory action on record against this asset.
Our read
The main risk
An extremely large supply that burns cannot meaningfully reduce, a pseudonymous founder, and value driven by attention rather than usage.
Before you buy anything
Check the contract address against the project's own documentation rather than a search result or a screener link, since impersonation tokens with identical names and logos are listed constantly. Check the order book depth before assuming you can exit at the quoted price. And write down what would make you wrong before you buy, not after. The Academy thesis module covers why that single habit protects more capital than any indicator.