We know many different crypto projects. Some will be great, and some will be known by no one. Swipe (SXP) is a project that got so big that Binance decided to buy it. It is best known for its crypto payment card. It is therefore also a major competitor of the crypto.com card. We explain what Swipe (SXP) is, how it works and how you can get a payment card yourself!
- 1 What is Swipe (SXP)
- 2 How does Swipe (SXP) work?
- 3 SXP
- 4 Governance
- 5 Strike
- 6 The security of the Swipe network
- 7 Payment cards from Swipe
- 8 The benefits of a crypto debit card
- 9 Partnership with Binance Exchange, token distribution
- 10 What makes Swipe unique from competitors?
- 11 Swipe Price and forecast
- 12 Where can you buy Swipe (SXP)?
What is Swipe (SXP)
The Swipe platform was founded in 2018 by Joselito Lizarondo and released its token at the end of 2019: the SXP. This happened after an ICO that raised $1.8 million in funds. The platform provides Visa payment solutions for cryptocurrencies. In 2020, it was so big that Binance decided to buy up Swipe. Swipe’s headquarters are in London, but it is now part of the company that is large in Hong Kong. Since Binance took over the card, the payment card is also known as the Binance card.
With this acquisition, Binance entered competition with crypto.com . They had always been in competition with each other, but this battle took it to a new level. The two companies are currently still in a race for who is the biggest.
Like crypto.com, Swipe offers very similar services such as a wallet , credit cards, a loan service, and an application that offers the ability to stake SXP, as well as trade in about thirty different cryptocurrencies. It is therefore a platform that can be widely used for various services.
However, Swipe had had some setbacks in the year 2020. It had been the target of criticism from users who denounced problems with the cashback system and the operation of credit cards. Still, it didn’t stop them from continuing. They are working to improve their card and services so that they can serve their customers in the best possible way in the future.
How does Swipe (SXP) work?
Swipe is thus a platform that offers similar services to crypto.com. You can lend, borrow and request payment cards on the platform. You can use a payment card everywhere, and you often get many benefits with it, so it is sometimes better to use the Swipe card than a traditional bank card.
But still, there’s a lot behind Swipe. For example, a connection must be made between an ATM and the blockchain . These are applications that are not so easy to implement. Many blockchains run into the same problem, and do not know how to make a link between off-chain data and on-chain data. This is an issue that Swipe also ran into, but has been resolved. Let’s take a look at how Swipe works to clarify what the platform is technically about.
SXP is Swipe’s token, and works like most other tokens on the Ethereum blockchain, but recently also on the Binance blockchain. This is the blockchain of the Binance token: the BNB . The acquisition of Binance has therefore ensured that Swipe can also run on the blockchain of the parent company.
The Swipe network is a decentralized application for dApps that is completely controlled by smart contracts. Smart contracts (also called smart contracts ) are pieces of code that represent a contract. Parties can program agreements in a smart contract. When the agreed conditions are met, the contract will execute itself. This removes the mistrust between the parties. Also, a notary is no longer needed to draw up contracts when parties use smart contracts.
These smart contracts allow Swipe to perform operations and conversions between fiat currencies and the SXP, which is the center of the network.
For greater decentralization, SXP’s Swipe platform has created a governance token. This means that decisions about the evolution and future of the blockchain are made by members of the Swipe community.
The governance protocol works like this: Community members who have staked SXP tokens can vote for the projects of their choice. The weight of an individual’s vote is proportional to the number the user has staked. So the more SXP tokens you have staked, the more heavily your vote will weigh in the elections on the future of the platform.
This governance system is common and while it tends to favor the whales, it actually makes it easier to rally the community around a project and avoid forks. If there is no decisiveness for decisions, the chance of a fork is considerable. Just think of Bitcoin Cash and Ethereum Classic .
As with transactions, governance is ensured by smart contracts that are publicly available on the Swipe network and Github.
At the time of writing, the supply of SXP tokens in circulation is approximately 86 million units, which is just over a quarter of the maximum of 289 million units expected at the coin’s launch.
Of these 86 million tokens, just over 32 million are currently blocked or staked in Swipe’s network. In particular, this makes it possible to reach some of the 20,000 SXP tokens that are distributed daily among the participants of the Swipe network. After all, the network distributes 20,000 SXP tokens every day to each participant who has staked SXP tokens, in proportion to its contribution to the total number of SXP tokens feeding the network. This reward will therefore decrease over time as the SXP tokens are handed out. The minimum number of SXP tokens to be deposited to contribute to the network is currently 1,000.
Please note that this figure, as well as the number of tokens issued or the amount of the daily reward, is subject to change depending on decisions made by the network board. Therefore, the number of tokens in circulation at the moment could be different. Or that the board of Swipe has decided to put more tokens in circulation. You can keep an eye on Swipe’s figures on websites such as Coinmarketcap. Within a few clicks you know exactly what the price, number of coins in circulation and market value is.
The security of the Swipe network
From the above information, you have already learned that Swipe’s network has many features that should ensure the functioning and security of the blockchain. But there is more, because Swipe wants to do everything it can to guarantee the safety of its users.
For example, Swipe has a $100 million insurance plan for Swipe users. So if something does go wrong, there is always something to fall back on. Users can also block their payment card in the app itself if they find it necessary. So if the card is lost, that doesn’t necessarily mean they’re losing money.
Payment cards from Swipe
Today, Swipe is best known in the cryptosphere for its credit cards that offer cashback and allow payments to be made whatever the crypto wallet.
The operation of these cards is similar to that of crypto.com and its token the CRO. You can also make payments with a payment card from crypto.com. For example, you can withdraw money in a supermarket, or withdraw money from an ATM with a card from crypto.com and Swipe.
The Swipe platform offers 4 different credit cards with a cashback that varies from 1 to 8% depending on the amount of SXP staked. The cashback will be returned in Bitcoin , not SXP tokens. That is fortunately not a problem, because Swipe supports more than 30 different cryptocurrencies.
The payment cards are made with Visa cards, and can be used in more than 30 countries within Europe. So you can pay almost anywhere in Europe with the Swipe payment card. They have also been given the green light to launch their wallet and payment cards in the United States.
The benefits of a crypto debit card
You may be wondering why you need a crypto payment card. It is also possible to convert crypto into euros and then put it on your debit card. Yet it is much cheaper to have a crypto debit card than a normal debit card. For example, you do not have to spend time transferring crypto to euros first. This saves transaction costs and time.
The biggest advantage is the cheap payment abroad. Normally you have to pay a reasonable amount of transaction costs to your bank when you use your debit card abroad. This is because the bank has to convert your euros into the local currency. Especially when this happens outside Europe. Because the blockchain is decentralized, it can be found in every country. Your euros how, this can run into the paper.
Another advantage is that you get cashback when you pay with the Swipe debit card. As a result, it can be very advantageous to use the crypto payment card, instead of your traditional payment card.
Partnership with Binance Exchange, token distribution
In July of this year, blockchain startup Swipe was officially acquired by Binance. With this, Binance wanted to compete with crypto.com. This competitor also has its own crypto payment card.
After the acquisition, the SXP token was listed on the exchange, contributing to the rise in price and popularity of the project. And already in August, an airdrop was launched, in which all BNB holders who owned at least 0.1 of the exchange’s internal BNB token could participate.
The distribution is done once a week, based on the current user balance, a total of SXP 16,000,000 is expected to be spent.
What makes Swipe unique from competitors?
In the world there are always enough competitors in the market. The same goes for Swipe. That’s why you need to be unique so that users choose you. And that is Swipe, because it has a number of features that make it unique.
Swipe allows users to have complete control over their cryptocurrencies. They do this, among other things, with a special app for smartphones and iPhones and various types of payment cards. The user-friendliness of Swipe is the most unique here. Swipe has been developed to be used by everyone. Both people who have a lot of experience with crypto and people who are new to crypto should be able to use Swipe.
In this way, Swipe hopes to ensure that more people switch to using crypto. For many people the threshold is high, since they have no knowledge of crypto, and therefore do not know where to start. With the Swipe app you have insight into your wallet and payment cards, and you can easily maintain your finances.
It is also unique that Swipe offers cashback on purchases made with the Swipe payment card. Users must therefore cease SXP to be able to purchase such a payment card. The size of the stake determines which card they qualify for:
- Swipe Sky
- Swipe Steel
- Swipe Slate
- Debit card
The bigger the stake, the better the card users get. And the better the card, the more cash back users get. This varies between 1% and 8%. To be fair, it is a reasonable cashback that users can get. Also with the cashback, Swipe hopes to encourage people to make more use of cryptocurrency.
Swipe also makes it incredibly easy to convert fiat money to cryptocurrencies. Users can do this within the app, after which they can use the cryptocurrency by paying with the payment card.
All in all, it is clear that Swipe is doing as much as possible to make crypto more accessible to the normal public. According to Swipe, crypto should be accessible to everyone. And that is quite unique. Many cryptocurrencies have been trying for years to make it as easy as possible for users, so that they appeal to the widest possible audience. Yet almost no one has succeeded, and Swipe is the platform that anticipates this anyway.
Swipe Price and forecast
Where can you buy Swipe (SXP)?
You can buy Swipe on well-known crypto exchanges, such as Binance, ByBit, Coinmerce and Bittrex. In the beginning, at least 78% of the trading volume was on the Binance exchange.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com