ShibaSwap: Is Decentralised Exchange Platform from Shiba Inu Safe?

Shiba Inu has recently launched its own decentralized cryptocurrency exchange platform known as ShibaSwap on July 6, 2021. The cryptocurrency faced a surge of 3% in its price immediately after launching the platform. Yes, Elon Musk has some influence on this launch. He tweeted that his Shiba Inu would be named Floki on June 25, 2021. Thus, there was a sudden rise in Shiba Inu’s stock price by 16% in the cryptocurrency market. Elon Musk is, indeed, a cryptocurrency influencer to introduce new cryptocurrencies to the world through his cryptic tweets. Shiba Inu is the latest cryptocurrency to hit the market but it is already gaining loads of attention.

Shiba Inu has a nickname known as Dogecoin Killer and was made as a Dogecoin spinoff to troll the memes related to it. In the current market scenario, it is on the way to becoming one of the favorite cryptocurrencies. It is looking forward to securing its future in the cryptocurrency market. Two coins are present in the ShibaSwap platform— SHIB and LEASH while another one BONE is coming very soon. There are multiple ways through which investors can engage with the new decentralized exchange platform— dig, fetch, bury, swap, bonefolio, and woof. Shiba Inu cryptocurrency has already been integrated into Shopping.io that consists of over 100 different cryptocurrencies. Investors with Shiba Inu tokens can exchange transactions with some popular eCommerce sites— Amazon, Walmart, and many more. According to CoinMarketCap, the current market rank of Shiba Inu is 29 with a market cap of US$3,169,495,026.28, down by 7.94%.

Being the decentralized exchange platform, ShibaSwap has decided to stay on the Ethereum blockchain network to maintain transparency. Investors need to connect to a digital wallet to view liquidity. These liquidity providers can earn returns on trades proportional to the share of the pool. ShibaSwap can retrieve any Uniswap or SushiSwap LP tokens efficiently with high slippage feature. But the site has reached the peak of controversy after Defi Safety failed ShibaSwap on all 22 reviews with a protocol of scoring 30% for the clarity of information on its whitepaper. It has tweeted that ShibaSwap is a prime example of utmost negligence with zero transparency and had a drastic score of 3%. There is also a warning that the staking contract of ShibaSwap is under the control of one particular address since day one. There is a high risk waiting for investors with the staking contract.

That being said, if you want to invest in Shiba Inu through the new decentralized exchange platform beware of the red flags in the cryptocurrency market.