In the past few years, a new sort of crypto category has stolen the spotlight, popularly known as memecoins. In contradiction to what people believed to be a passing trend, memecoins have firmly secured themselves in the crypto market. A prime example is DogeCoin (DOGE), currently holding the 7th spot among top cryptocurrencies, along with its rival, Shiba Inu (SHIB), at 16th.
Despite a wide gap in ranks between these well-known memecoins, SHIB is steadily narrowing the distance with its ever-growing ecosystem developments, gains, and increasing use cases.
In July 2021, the Shiba Inu ecosystem expanded to include Bone ShibaSwap, cementing its foothold in the DeFi sector while garnering the interest of crypto enthusiasts. Let’s understand what exactly a BONE token is and take a broader look at ShibaSwap.
The Bone Token
BONE tokens, along with SHIB and LEASH, are key players that constitute the Shiba Inu ecosystem, which came into existence in August 2020.
BONE is a governance token with voting functionality and was created to be the native token for the ShibaSwap decentralized exchange (DEX). BONE allows the Shiba Inu community, also known as the Shib Army, to vote on platform decisions like upcoming proposals, proposal submissions, etc. Additionally, It provides access to its future NFTs.
Like most tokens with voting functionalities, the amount of BONE held by a user is directly proportional to the significance of the vote.
The ShibaSwap Ecosystem
ShibaSwap is an Ethereum-based DEX and a participant in the DeFi movement. Launched on July 7, 2021, to allow platform users to trade their SHIB tokens for other cryptos, ShibaSwap claims to give users the ability to DIG (provide liquidity), BURY (stake), and SWAP tokens to gain returns.
The platform is inclusive of its NFTs called Shiboshis, its Metaverse called SHIB: the Metaverse, its card game called Shiba Eternity, and its proprietary layer 2 blockchain, Shibarium. Moreover, it also includes some additional tools, such as portfolio trackers, to make navigating the crypto world simple and intuitive.
SHIB, BONE, and LEASH
ShibaSwap includes three key token players: Bone (BONE), Shiba Inu (SHIB), and Doge Killer (LEASH) tokens.
Shiba Inu (SHIB) is the main or primary token of the ShibaSwap DEX. According to the ShibaSwap website, the ETH-based token launched in late 2020 has “grown to become a worldwide phenomenon and is now accepted as a form of payment at hundreds of locations, either directly or through third-party intermediaries.”
Among the Shib Army, LEASH is believed to be the “Dogecoin (DOGE) killer”. Dogecoin enthusiasts would be interested to know that LEASH is the second-largest dog-inspired memecoin in the crypto space.
With a total supply of 107,646 tokens, LEASH is positioned as a “special token” for loyal supporters of the ecosystem, enabling holders to benefit from exclusive perks and access, as per the official website. It includes incentivized BONE rewards for liquidity providers on ShibaSwap, exclusive access to Shiboshi NFT minting, and early access to ‘Shib: The Metaverse’ land sales.
BONE is a middle link in the ecosystem. On ShibaSwap, SHIB holders provide liquidity for BONE reward tokens. Users can also stake tokens to earn rewards. As with voting, rewards are directly proportional to the amount and duration of the staked tokens.
BONE: Where Does the Value Lie?
ShibArmy views BONE as a no-brainer when it comes to buying and holding. They believe the value lies in the platform it is backed by, ShibaSwap.
The tweet below is by @BoneShiba, the largest BONE-centric account on X.com (formerly Twitter) with over 35k followers (notably, the Official Shib X account has over 3.7 million followers). It lists out reasons why the token is the most up-and-coming token, with massive value attached to it.
- BONE is the gas token for the Shibarium blockchain. Whenever a transaction is processed on the blockchain, a nominal amount is charged as a fee. A gas token is a crypto that is specifically used to pay the aforementioned transaction fee.
- All the additional elements of the ShibaSwap ecosystem that lie on the Shibarium blockchain require BONE for their transactions. These include the ecosystem’s metaverse, its NFT games, etc.
- We already know BONE enables an individual to hold voting power. ShibaSwap employs a Decentralised Autonomous Organization (DAO), which they call Doggy DAO. This DAO allows users to create and vote on proposals for ShibaSwap and the greater Shiba Inu Ecosystem. As such, it directly increases the utility of the token.
- Shiba Inu partnered with burger joint Welly’s in 2022. SHIBs will be used as a method of payment, which, as a result, will employ Shibharium and utilize the Bone token. Moreover, LEASH and Shiboshi holders get exclusive access to perks, discounts, and rewards.
- It is also believed that because the Bone token is yet to be listed on major exchanges, it has a value that hasn’t yet been priced in and is therefore a good investment.
Bone ShibaSwap (BONE) is available on ShibaSwap, Uniswap (V3), Gate.io, Poloniex, and Bitget, among other exchanges.
Also read: MOON: The Currency of r/Cryptocurrency
The Flip Side of the Coin
As with all tokens, there are two sides to the market sentiment. The biggest argument of those bearish on Bone token is that the top 100 BONE holders own a whopping 59.83% of the coin.
In the cryptoverse, this could be a warning signal because it means that a majority of the price volatility is in the hands of very few people. This disparity increases the ‘centralization’ of decentralized crypto.
The top holder of Bone owns 10% of the entire coin share. In comparison, the top BTC holder has only 2% of the coin share, meaning more stability, fewer shocks, and less centralization.
Critics also question the longevity and validity of the Shib universe, which is what gives the token its value.
Source: CoinMaketCap
At the end of the day, crypto investments are riskier and require higher due diligence than a conventional stock. The game becomes even trickier where altcoins and memecoins are concerned because they usually stand on the ground of transient trends.
It is therefore essential for an investor to know the pros and cons of the coin as well as their own risk appetite.
Explore the vast universe of ShibaSwap, weigh the outcomes, and decide whether there’s potential in the backbone of the Shiba Inu Ecosystem!
