Dogecoin – the meme crypto – has pioneered a new class of cryptocurrencies. With the unwavering support of Elon Musk, Dogecoin reached to unparalleled heights and became an internet sensation. The hype led to the development of the crypto segment with other competitors jumping in the market – namely, Shiba Inu.
Shiba Inu was launched in August 2020 and regarded as “The Doge Killer” by its fan following. However, the Doge Killer is facing the strong competition of its own – and not from the Doge.
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The competition in the cryptocurrency market is brutal with new projects and cryptocurrencies going in and out and unseating established ones from their ranks. Safemoon experienced a similar hype to the meme tokens as it flourished under the attention. Quickly after its launch, it positioned itself as a strong contender for Shiba Inu’s position. So, we ask: which one has better potential?
Safemoon vs. Shiba Inu – The fundamentals
Safemoon is a cryptocurrency built on Binance Smart Chain with the aim of becoming the medium of exchange. Safemoon soon became a fan favorite because immediately after its launch in March 2021, the price of the cryptocurrency skyrocketed. The tokenomics of the cryptocurrency is what sets it apart from the crowd. Safemoon was designed to discourage selling by charging sellers and encourage long-term holding of the cryptocurrency by rewarding HODLers. A 10% fee is charged on selling – half of which goes to HODLers as reward while the other half is added to the liquidity pool which is kept to help maintain the price of the token.
However, cryptocurrency is far from ideal. An audit firm CertiK found some major flaws in the architecture of Safemoon. Per the firm, the owners keep some proportion of the tokens from the liquidity pool which gives them control over the token. Moreover, the developers also actively engage in limiting the supply of the cryptocurrency to boost the price. The disincentivizing mechanism also causes liquidity problems.
Shiba Inu, on the other hand, is an ERC-20 token – which means it is based on Ethereum’s blockchain. It has been in the market longer than Safemoon. The cryptocurrency is described as a meme token which is designed to turn into a fun and vibrant ecosystem. This is achieved by the fact that the creator of SHIB – an anonymous individual going by the name of Ryoshi – has also created similar tokens BONE and LEASH as well as a decentralized exchange ShibaSwap.
An audit of the cryptocurrency had revealed heavy risks of centralizations. According to the audit, a developer has a lot of control and authority over the token and has the ability to virtually drain all of the supply of the BONE token.
Current position and future outlook
Both Safemoon and Shiba Inu have their fair share of unique selling points as well as cons. So, what does their future potential look like?
At the time of writing, Safemoon stands at $0.000001478 while Shiba Inu is trading hands at $0.000007529. According to the estimates of Digital Coin Price, Safemoon is expected to close the year with $0.000002184 and Shiba Inu at $0.00001118. To make it simple, by the end of the year the return on investment of Safemoon is expected to be 47% and for Shiba Inu it is 48%.
With near identical technicals and fundamentals, choosing between the two cryptocurrencies is a hard task so why not get your hands on both of them?