Author: shibainu

What are taxes in USA when for Shiba Inu?

As a United States citizen, it is crucial to be aware of the tax implications when owning and selling Shiba Inu or other cryptocurrencies. The IRS classifies these digital assets as property, and therefore any profits or losses from their sale will be subject to capital gains tax.

To correctly calculate the capital gain or loss on Shiba Inu, it’s essential to maintain accurate records of the purchase price and any expenses incurred during the acquisition and holding of the cryptocurrency, such as transaction and storage fees.

If the Shiba Inu is held for less than a year, any gains will be considered short-term and taxed at the same rate as ordinary income. On the other hand, if the Shiba Inu is held for more than a year, the gains will be considered long-term and taxed at a lower rate. Capital losses can also be used to offset capital gains, lowering overall tax liability.

In addition to capital gains tax, self-employment tax may also apply if Shiba Inu or other cryptocurrencies are used as a form of business or trade, currently set at a rate of 15.3%.

It’s worth noting that certain states have their own cryptocurrency tax laws and regulations, so it’s important to check with the state tax agency for any additional taxes that may apply.

When reporting cryptocurrency transactions to the IRS, it’s important to use Form 8949 and Schedule D of the Form 1040. Form 8949 is used to report capital gains and losses from the sale of property, including cryptocurrencies, and Schedule D summarizes this

information and reports it on the Form 1040. It’s also worth noting that virtual currency miners are subject to self-employment tax on the income derived from mining activities, as stated in IRS guidance issued in 2019.

It’s important to keep in mind that the IRS has been actively enforcing compliance with virtual currency tax laws, so it’s essential to report your virtual currency transactions correctly and timely. The IRS has been using various methods, such as sending warning letters to taxpayers who might have failed to report their virtual currency transactions and using third-party data providers to identify taxpayers who might be underreporting or not reporting their virtual currency transactions.

In conclusion, as a United States citizen, you will be subject to capital gains tax when selling Shiba Inu or other cryptocurrencies. The rate of tax will depend on how long you’ve held the Shiba Inu, and you may also be subject to self-employment tax if you’re using Shiba Inu or other digital assets as a form of business or trade. To ensure compliance with all applicable tax laws and regulations, it’s essential to keep accurate records and consult with a tax professional. Additionally, it’s important to be aware of any state-specific laws and regulations regarding cryptocurrency taxes, and to be mindful of the IRS’s enforcement efforts in this area.

Benefits of Shiba Inu (SHIB) Crypto Coin

Shiba Inu (SHIB) Crypto Coin, which is a decentralized digital currency built on Ethereum. This cryptocurrency has seen a steady rise in popularity over the past few months due to its low supply and high demand from investors. It is currently ranked in the top ten of all cryptocurrencies by market capitalization and is quickly becoming one of the most popular tokens in the space. Explore what makes SHIB unique, how it works and why it’s quickly becoming a favorite among crypto traders.

Pros:

– Low supply and high demand from investors

– Growing popularity over the past few months

– Ranked in top ten of all cryptocurrencies by market capitalization

– Quickly becoming one of the most popular tokens in the space

Cons:

– Extreme volatility due to its low supply and high demand may lead to price crashes or sharp rises, making it a risky investment for inexperienced investors.

– Unregulated nature of cryptocurrency means that SHIB is subject to fraud, scams and other crimes which can put investor’s money at risk.

Shiba Inu is quickly becoming one of the most popular cryptocurrencies, and it has a lot to offer investors. Its low supply and high demand make it attractive for those looking to capitalize on its potential growth in value. However, like with any cryptocurrency investment there are risks involved due to its unregulated nature which can lead to fraud or scams. For experienced crypto traders this may be worth taking into account when deciding whether SHIB is an appropriate choice for their portfolio. Ultimately, only you can decide if Shiba Inu’s pros outweigh the cons and will be a profitable addition to your holdings.

 

 

8.5 Trillion Shiba Inu Moved; SHIB Burn Rate Declines

Shiba Inu coin (SHIB), the world’s second-largest meme cryptocurrency, has experienced a significant increase in value over the last week.

Shiba Inu (SHIB), the world’s second-largest meme cryptocurrency, has experienced a significant increase in value over the last week. As per the recent tweet from whale alert, an unidentified whale transferred nearly 3 trillion Shiba Inu tokens between wallets, valued at $26.3 million.

Both addresses are inactive and relatively new. These wallets contain no other tokens besides SHIB. Notably, SHIB is no longer the largest holding among the top 100 largest Ethereum whales, according to WhaleStats.

As per the ShibBurn data, the Shiba Inu coin burn rate is down by 41% in the last 24 hours. The burn rate coin declines despite the massive transfer of SHIB among whale wallets. Recently, SHIB developer ‘Shib Trophias’ shared an update about the project’s completion without naming it. The developer also stated that the project will be launched in phases to aid in the content flow. SHIB transfer from one wallet to another can be linked with the recent announcement.

According to WhaleStats’ on-chain data, the top 1,000 ETH whales own a total of $32.1 million in SHIB. Their next largest holding is Oracle blockchain Chainlink (LINK), which is worth $11 million, and gaming metaverse protocol Decentraland (MANA), which is worth $6.7 million.

As per the coinmarketcap data, the live Shiba Inu price is $0.000009 USD, and the 24-hour trading volume is $83,113,182 USD. SHIB price has increased by 1.70% in the last 24 hours, with a live market cap of $5,112,441,649 USD. It has a total circulating supply of 549,063,278,876,302 SHIB coins. There is insufficient supply.

SHIBA INU will reach $ 0.000007689

According to our current SHIBA INU price prediction, the value of SHIBA INU is predicted to drop by -18.32% and reach $ 0.000007689 by December 11, 2022. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 25 (Extreme Fear). SHIBA INU recorded 13/30 (43%) green days with 8.70% price volatility over the last 30 days. Based on our SHIBA INU forecast, it’s now a bad time to buy SHIBA INU.

Shiba Inu Records Trillions In Whale Accumulation

The crypto market saw a massive recovery as whales grab the opportunity to buy the dip. Whales accumulated over 1 trillion Shiba Inu tokens in the last 24 hours, with trading volume also reaching to trillion. The move comes as the World Economic Forum invites Shiba Inu to work together as part of metaverse (MV) global policy.

As a result, the SHIB price soars almost 10% in the last 24 hours, with the current price trading at $0.0000090.

Shiba Inu Soars 10% Amid Massive Whale Accumulation

Shiba Inu’s core developer Shytoshi Kusama in a tweet on November 23 announced the World Economic Forum wants to work with Shiba Inu. Thus, Shytoshi Kusama created a poll to let the community decide whether Shiba Inu should work with the World Economic Forum on metaverse policy.

“We would be at the table with policy makers and would help shape global policy for the MV alongside other giants like FB (bye Zuck), Sand, Decentraland etc. And please don’t ask my opinion, you already know.”

Almost 63% have voted to work with the World Economic Forum, citing reasons such as increasing adoption and opportunity for SHIB. Meanwhile, most community members agree to first finish work on the Shibarium upgrade.

The move saw whales accumulating trillions of SHIB tokens. Recently, a whale scooped up over 432.30 billion SHIB and another whale added 1.29 trillion SHIB tokens.

Moreover, there have been a total of 134,952,334 SHIB tokens burned in 10 transactions in the past 24 hours. In fact, a single burn of 127,821,443 SHIB tokens was reported by ShibBurn.

SHIB Price Soars 10%

Shiba Inu (SHIB) price soars nearly 10% in the last 24 hours. The SHIB price is currently trading at $0.0000090. The 24-hour low and high are $0.0000082 and $0.0000090, respectively.

The trading volume saw a record 7.2 million percent jump as whales accumulated trillions of SHIB tokens. The SHIB price is reaching resistance near $0.0000092. If the price jumps over the level, SHIB will regain the $0.000010 level without much resistance.

SHIBA INU (SHIB) Price Prediction

According to our current SHIBA INU price prediction, the value of SHIBA INU is predicted to rise by 4.64% and reach $ 0.000008666 by November 27, 2022. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 22 (Extreme Fear). SHIBA INU recorded 13/30 (43%) green days with 12.99% price volatility over the last 30 days. Based on our SHIBA INU forecast, it’s now a bad time to buy SHIBA INU.

Are Cronos And Shiba Inu The Next FTX And Solana?

I believe last week is going to go down as one of the most important in crypto history. The collapse of FTX (FTT-USD) is likely going to create ripple effects throughout the rest of the crypto market and it could potentially even have an impact on traditional finance. The logical question now is who is next? Over the summer, we saw the collapse of Terra (LUNC-USD) result in a contagion effect that also took out 3 Arrows Capital, Voyager Digital (VGX-USD)(OTCPK:VYGVQ), and Celsius Network (CEL-USD).

The FTX collapse has weighed heavily on the entire crypto industry over the last week. While the bear case for FTX Token is self-evident at this point, one coin that was hit particularly hard because of FTX was Solana (SOL-USD). While there is good reason for that, if Solana’s network metrics were performing better, SOL may have shown better resiliency. Crypto investors are now looking at other centralized custodians and wondering if we may see history repeat. Much of the noise online about the next potential shoe to drop has been popular exchange Crypto.com (CRO-USD). The token has taken a beating because of that speculation.

On the chart, we can see $0.10 has served as support during this big downturn following the liquidation events from this summer. That support has broken and CRO appears to be entering a freefall as well. There’s actually good reason to wonder if Crypto.com is having problems. We know from recent reporting by Ad Age the company has been scaling back ad-spending and cutting its staff.

In the months that followed, Crypto.com quietly downsized many of the partnership deals intended to garner mainstream attention for the brand, and in some cases the firm has attempted to pull out from these deals altogether, according to details shared by former and current employees at the company who spoke with Ad Age on the condition of anonymity.

This is not a good look but it doesn’t mean the company is going out of business. It could actually be an indication that Crypto.com has been trying to be more responsible with expenses given the broad market declines of the last several months.

Like FTX, Crypto.com is a well-known centralized crypto exchange. Also like FTX, the company has committed a lot of money through its marketing department. Crypto.com owns the naming rights to the arena where the NBA’s Lakers, Clippers, and NHL’s Kings play. This is among other sports sponsorship deals that include FIFA and Formula 1. Just like FTX before, we’re starting to see funds moving out of known Crypto.com wallet addresses. These are just the Ethereum (ETH-USD) addresses associated with Crypto.com:

After a big spike in fund flow on Friday, we’ve seen three consecutive days of outflow and the worst of it is actually within the last 24 hours – with over $121 million coming out of Crypto.com just in the last day. However, while there are some similarities with FTX from both a marketing strategy and asset outflow problem, we are told there are key differences as well.

On one hand it probably isn’t fair to assume Crypto.com is structured as poorly as FTX simply because it’s a crypto business. On the other hand, how many times do market participants need to learn the same lesson on self-custody? Early this morning Crypto.com CEO Kris Marszalek did an AMA and explained how Crypto.com is different from FTX:

We are not a hedge fund. We do not trade customers’ assets. We also kept reserves 1:1 and that’s very true today.

What we don’t know yet is what Crypto.com’s corporate obligations are. Marszalek said in the AMA that we can expect liabilities clarity in the next few weeks and he also said the company doesn’t collateralize the CRO token. I’d say these are generally positive signs for the customers of the Crypto.com platform. But it still does require trust in both Marszalek and the platform itself to justify keeping assets stored there. To its credit, Crypto.com has worked with Nansen to provide a live dashboard of the company’s self-reported crypto wallet addresses. This allows anyone to see the assets the company has in reserve. It is good transparency, but it does raise another question:

A big concern I see on this token allocation is nearly 22% of the company’s $2.3 billion assets in Shiba Inu (SHIB-USD). SHIB is yet another dog-money meme coin that I personally wouldn’t recommend going anywhere near. But if you are bullish SHIB and worried about Crypto.com’s solvency, this revelation could be cause for concern.

Even though I don’t personally see a need to have SHIB exposure, there are others who disagree. For them, the crypto.com position in Shiba Inu becomes more interesting. With a $2.3 billion balance sheet and 21.74% exposure to SHIB, Crypto.com’s SHIB position is roughly $500 million – or a little under 10% of SHIB’s fully diluted market valuation according to CoinMarketCap. Crypto.com and its users have a very large ability to move the SHIB price lower if those assets get sold. This isn’t quite as large as Binance’s FTT position as a percent of FTT’s market cap a week ago, but it’s bigger than Alameda Research’s SOL position was.

Alameda Research had a $1.2 billion SOL position while Solana’s fully diluted cap was about $17 billion at the end of June. Since Alameda Research had such a large position in SOL and needed to liquidate assets to defend its FTT position, SOL’s price experienced more than a 60% drawdown over the course of just a few days. In this morning’s AMA, Kris Marszalek said Crypto.com’s SHIB position is so large because that’s what the customers on the platform are buying and the company needs to allocate to that asset accordingly in its reserves so that when customers want their SHIB, the company actually has it.

If we trust Marszalek isn’t acting nefariously, there shouldn’t be as much risk in Crypto.com defaulting on customer obligations if the company truly has a 1:1 reserve ratio even if the run on assets on Crypto.com continues and customers start taking self-custody of their SHIB. Even if Crypto.com does actually have solvency problems like FTX, I don’t necessarily see a Solana-like risk here for Shiba Inu unless Crypto.com starts selling the SHIB without customer permission. But that would be an indication of much more severe problems and I view that outcome as very unlikely despite what we just witnessed last week from a peer.

I’ve covered CRO before for Seeking Alpha. That coverage was not positive of the token because staking the asset in Crypto.com’s earning ecosystem had become far more expensive than it was previously. Since that article, the rewards have increased slightly on the lower tiered Visa (V) cards but it still isn’t economical to take advantage of that offer in my view. That may be why CRO makes up such a small portion of Crypto.com’s token allocation. Clients aren’t holding it anymore because there isn’t much reason to.

Just 3.7%, or $54 million, of the $1.5 billion Ethereum-based assets on crypto.com are CRO token. Even though I don’t see much purpose as an exchange token, CRO is still utilized in the Cronos ecosystem.

Despite the large declines in the price of the coin, the TVL measured in CRO is actually now at an all-time high after spiking from 6.75 billion CRO to over 10.42 billion CRO in the last 5 days. Still I would exercise a lot of caution before buying the CRO dip. 54%, or $360 million, of the TVL on Cronos is attributable to one protocol: VVS Finance (VVS-USD), an entity that appears to be a classic high-APY, yield farming protocol destined to fall apart.

Summary

If you’re a Crypto.com user, I recommend using it as an on-ramp not as an asset custodian – at least not with a significant portion of your funds. Crypto.com’s token has been taken to the woodshed over the last few days and you could argue the selloff is overdone given the severity of the decline. But I’d caution buying CRO for its potential utility on the Cronos blockchain. With 75% of the blocks coming from just three entities, the blockchain validation is highly centralized and the DeFi footprint looks to be mostly attributable to the kind of risky protocols that Alameda Research was playing with.

While we don’t know what the other side of Crypto.com’s balance sheet looks like, even if the company is solvent I don’t see a big reason to buy CRO. I’m not a fan of SHIB either but I don’t think SHIB will get the same treatment from Crypto.com that SOL got from Alameda Research.

Bear market. Crypto Winter. Whatever the label; Bitcoin has struggled in a macro environment of interest rate hikes and balance sheet tightening. Despite those struggles, a balanced approach to crypto can work right now. An equal weighted allocation to my Top Token Ideas in BlockChain Reaction is beating a dollar cost averaged Bitcoin position.

SHIB Price History

Shiba Inu coins first entered circulation in 2020 through a decentralized exchange offering on Uniswap at an initial Shib price of $0.0000000015. According to the Shiba Inu’s price history charts, the price of the Shiba token experienced its first notable rally in May 2021, topping at $0.000038 per Shiba Inu coin.

Another significant rally in the Shiba coin price came in October 2021, when the Shiba Inu coin price reached as high as  $0.000088. Due to the massive Shiba token price increase, Shiba Inu easily outperformed all other digital currencies in 2021, having recorded a nearly 42,000x price increase during the span of the year.

The popularity of Shiba Inu led to listings on most major cryptocurrency exchanges, which means that SHIB can now be bought on Binance, Kucoin, Kraken, and virtually all of the most prominent digital asset trading platforms.

Here is what the historical SHIB price data tells us about key milestones in the token’s price history:

  • $0.00000005 – Our earliest SHIB historical data shows Shiba Inu coins changed hands at $0.00000005 in Jun 2020
  • $0.00000030 – By early Feb 2021, the price of Shiba Inu coin reached $0.00000030
  • $0.00000100 – In the span of roughly a month, Shiba Inu coin’s price tripled to $0.00000100 in March 2021
  • $0.00003000 – Broader crypto bull run pushed SHIB’s price to $0.00003000 in May 2021
  • $0.00008000 – The price SHIB surpassed $0.00008000 in October 2021

With a monumental price increase after its launch, many investors have been looking at the possibility of Shiba Inu token reaching new milestones in the future. While Shiba Inu reaching $1 is all but impossible, lower milestones like $0.001 or even $0.01 remain within the realms of possibility.

For a glimpse into potential future SHIB price movements in addition to the Shiba Inu coin live price, you can follow our algorithmically generated Shiba Inu price predictions that take into account SHIB’s current price and a number of market indicators, including Fear & Greed Index, market sentiment, overall volatility, and more. You can also check the up-to-date market rate of 1 SHIB to USD via our handy crypto-to-fiat and crypto-to-crypto conversion feature.

Shiba Inu Investing Considerations

Investing in cryptocurrencies is risky enough because of their massive volatility and lack of regulation. Investing in the altcoin/meme coin space presents an additional challenge because of a lack of differentiation and the fact that most of their value is based on frenetic trading by their fanatical followers. Here are some investing considerations for a potential investor in Shiba Inu.

Shiba Inu’s price soared more than tenfold in October 2021, giving it a peak market capitalization of $41 billion (on Oct. 29, 2021) and became one of the top ten meme cryptocurrencies by this measure. A tweet from Tesla founder Elon Musk on Oct. 3, 2021, featuring a picture of his new Shiba Inu puppy Floki provided the initial impetus for the meme coin’s price surge. Because Musk is one of the most high-profile supporters of Dogecoin and the self-proclaimed “Dogefather,” his cryptic tweets often result in heightened volatility in the cryptocurrency space.

Shiba Inu’s price surge in October 2021 resulted in it almost catching up to Dogecoin’s $36.9 billion market capitalization (as of Oct. 31, 2021), after briefly surpassing it at one point.

It remains to be seen whether Shiba Inu will indeed become “the Dogecoin killer” that its growing community of supporters—known as the SHIBArmy—expects. But at least in October 2021, the stunning price gains of this previously obscure altcoin made Shiba Inu the tail that wagged the Dog(ecoin).

Low per-token price: Even after its impressive gains, Shiba Inu (SHIB) costs a fraction of a cent, so one can buy millions of SHIB tokens with a few hundred dollars. At its peak price of $0.00007482 (on Oct. 29, 2021), $100 would have fetched you over 1.5 million SHIB tokens. Currently, at $0.00002925, $100 will buy you 3.4 million SHIB tokens, more than twice as much.

Limited utility and use case: Though its adherents may point out that Shiba Inu-based NFTs are now available, and its Ethereum base might enable smart-contracting capabilities in the future, Shiba Inu presently has very limited utility and does not have a compelling use case yet.

High volatility: Shiba Inu’s peak market capitalization of $41 billion makes it larger than many S&P 500 companies that have been in existence for decades and that have grown sales and profits for most of that time. In fact, the combined $79 billion value of Shiba Inu and Dogecoin (as of Oct. 28, 2021) exceeded the market capitalization of 388 companies on the S&P 500. On Aug. 2, 2020, SHIB was trading at $0.00000000051, so at its peak price of $0.00007482 (on Oct. 29, 2021), it has gained an astronomical 14,670,488%! This means that $1 invested in SHIB on Aug. 2, 2020, would have been worth a cool $146,705 on Oct. 29, 2021. By mid-2022 the price had fallen to $0.00001040.

That eye-popping return also means that Shiba Inu has achieved its founder Ryoshi’s objective of creating something from nothing in spades. However, those gains may likely have been driven by social-media-fueled speculative frenzy as cryptocurrency enthusiasts look for the next big thing. If the bubble bursts, retail investors who got in at the highs may be left holding the bag.

The Shiba Inu Ecosystem

The Shiba Inu ecosystem consists of the following three tokens:

Shiba Inu (SHIB): The project’s foundational currency is Ryoshi. To start, he locked 50% of 1 quadrillion Shiba Inu coins in Uniswap for liquidity purposes and sent the other 50% to Ethereum co-founder Vitalik Buterin for safekeeping. In May 2021, when India was suffering from the Delta variant of coronavirus, Buterin donated more than $1 billion worth of Shiba Inu coins to a COVID-19 relief fund in India. Shortly thereafter, Buterin also burned 40% of Shiba Inu’s total supply by permanently removing it from circulation to a dead wallet.

Leash (LEASH): The second token in the Shiba Inu ecosystem, Leash, is much scarcer than other tokens in the system. With a total supply of only 107,646 tokens compared with trillions of Shiba Inu tokens.

Bone (BONE): There are a total of 250,000,000 Bone tokens in circulation. It is designed to be used as a governance token that will allow the SHIBArmy to vote on future proposals.

Three tokens make up the Shiba Inu ecosystem: Shiba Inu (SHIB), Leash (LEASH), and Bone (BONE).

The Shiba Inu Ecosystem also includes:

  • ShibaSwap: The purpose of DeFi platform ShibaSwap is to be a safe, decentralized place to trade cryptocurrencies. SHIB and LEASH can be bought and sold through ShibaSwap.
  • Shiba Inu Incubator: The incubator hopes to move beyond traditional art forms like painting, photography, and digital rendering to find new ways of honoring creativity.
  • Shiboshis: Shiboshis are NFTs generated by 10,000 Shiba Inus. Each Shiboshi is unique and has different collectible traits.