The Ultimate Guide to Swipe – The Crypto Debit Card with a taste for DeFi
Swipe is one of the fastest developing companies in the crypto industry. It is less than two-years-old, and it has already partnered with Visa to release a debit card for crypto payments and caught the eye of industry giants like Coinbase and Binance. The latter loved Swipe so much that it bought it in 2020 and used its SAFU fund to back up the wallet’s money-rolling operations.
Today, we take a closer look at Swipe and its upcoming immersion into the DeFi market, the Swipe Network. This guide should help you understand what makes Swipe one of the most exciting projects in the Cryptoverse.
What is Swipe?
Swipe is a multi-service company in the crypto space that allows its users to buy, sell, and swap a wide range of digital assets. Since its inception on the Ethereum blockchain, Swipe has evolved into a reliable entity and won the trust of industry giants like Coinbase and Binance.
Some of the services offered by Swipe include:
- A multi-currency wallet
- Cryptocurrency debit cards
- Cryptocurrency payment solutions for merchants
- Cryptocurrency borrowing
- Cryptocurrency savings
- Custom cryptocurrency debit card issuance
Swipe also has a native token, called the Swipe token (SXP), facilitating decentralized finance (DeFi) protocols and applications on the Swipe Network.
Swipe states its mission to “ensure that our customers are well-cared for, leaving them free to make a mark on the world using Bitcoin and other cryptocurrencies.”
We will see how close the company is to reach its goals when breaking down its many features and services further below. For now, we will make a short detour and find out who is behind Swipe.
A Brief History of Swipe
The Swipe Company is registered in London, England. However, its head office and team are located in Taguig, Manila, Philippines. The project is led by Joselito Lizarondo, an active crypto developer and trader, and its CEO.
According to the Swipe whitepaper, the company was founded in 2018, but it started making waves in the industry only a year later as a multi-asset digital wallet application. A partnership with Visa to release a debit card for crypto use was one of the highlights of 2019.
The SXP token release on August 1st, 2019, helped Swipe establish itself on the DeFi market. From then on, the company released several DeFi services one after another.
In 2020, Swipe continued to enhance its credibility and usability by teaming up with Samsung and allowing Samsung Pay users to make payments from their Swipe Visa Card.
However, the big breakthrough came in June 2020 when Binance acquired Swipe to accelerate “mainstream adoption of cryptocurrencies by bridging the gap between fiat and digital assets, notably payments and purchases in cryptocurrency through traditional financial systems.”
Swipe’s latest products have pulled from its seemingly bottomless bag of innovations is the LendFi Instant Visa Card that enables users to loan digital assets on the LendFi App. The service is the result of a partnership with California-based payments company Marqeta.
Swipe Features & Services Explained
The market for cryptocurrency wallets expands quickly enough to make some of the rudimentary options fade into obscurity. Swipe pleads its case for long-term use and existence with a broad offer of features and services. Here are the most relevant ones!
This decentralized crypto wallet is one of the company’s top-shelf products. It supports more than 30 cryptocurrencies, and it is backed by three of the most reliable and secure fund custodians in the business:
- Binance’s SAFU fund
- Coinbase Custody (100m USD)
- BitGo (100m USD)
Most of the assets are safely kept in cold storage. Swipe users can swap between assets and even buy them directly using a debit card, credit card, or wire transfer.
Swipe Crypto Debit Cards
The Swipe Visa Debit Card enables users to make purchases directly with cryptocurrencies. There is no need for prior conversion to fiat currencies, so there are fewer transaction fees and costs.
At the moment, there are four different types of Swipe-backed debit cards: Saffron, Sky, Steel, and Slate.
All the versions of the Swipe Visa Card, except for the Saffron card, require users to stake Swipe’s SXP token to receive lucrative rewards. These prizes may include 100% rebates for services like Spotify, Netflix, Hulu, Amazon Prime, and Apple Music.
Users also have access to mouthwatering cash back rewards when using the Swipe Visa Card, which comes in Bitcoin and is as high as 5%. Additionally, they can use a digital version of the debit card with just their smartphones and any merchant that accepts Google Pay and Apple Pay.
Crypto users are not the only ones benefiting from the Swipe payment services. Businesses and merchants can also choose to have cryptocurrency payments automatically converted into 1 of over 20 fiat currencies. The service is available in more than 180 countries.
Swipe Credit is a centralized, cryptocurrency lending platform. It gives users access to crypto-assets that they can loan by offering collateral. Some of the cryptocurrencies available for borrowing include USDT, PAX, BTC, ETH, DAI, XRP, SXP, EOS, USDC, LTC, and BCH.
Users can only withdraw 50% of the USD value of the cryptocurrency they lock in as collateral. The interest rates on loans start at 6% per year.
This service enables users to deposit one of the 12 digital assets available for Swipe Credit in exchange for annual percentage yields (APY) of up to 14%.
Through this feature, Swipe allows third-party entities to develop physical and digital cryptocurrency debit cards on its platform. As part of the service, Swipe takes care of all the regulations and ensures that the card is compliant with the legal demands before issuing.
What is the Swipe token (SXP)?
Swipe enables its users to pay for fees and other products on its platform through its native token, SXP.
The Swipe token (SXP) is an ERC-20 token built on the Ethereum blockchain. Besides its use in debit card operations, SXP is also a fundamental component of the DeFi-servicing Swipe Network, where holders use it for staking or voting as part of the governance mechanism.
SXP is a deflationary cryptocurrency. A limited supply of 300 million tokens has been minted. A smart contract establishes that 80% of every SXP unit used to pay for fees gets burned.
However, when SXP reaches its 100 million deflation limit, new tokens will be minted to create the necessary funds for staker rewards.
SXP was launched through two Initial Coin Offerings (ICOs) in August 2019. The first event was private, and it managed to raise more than $3.9 million after selling over 19.5 million SXP for 0.20$USD apiece. The second event was public and raked in over $8 million after selling 40.4 million SXP at the same price.
The remaining 240 million SXP tokens were distributed as follows:
- 20% (60 million SXP) were allocated for the Swipe team.
- 40% (120 million SXP) were allocated to reserves.
- 20% (60 million) was allocated to the founders of the project.
As of October 2020, the SXP token has a market capitalization of $72,126,726. There are over 76,766,934 units in circulation, and one SXP token is trading for $0.939. The all-time high (ATH) value of SXP is $5.02, and it was recorded in August 2020. Swipe plans that by August 2028, all the SXP tokens will be in circulation.
The SXP token is available to trade at crypto exchanges like Binance, Bittrex, and KuCoin. Because it was built on the Ethereum blockchain, SXP tokens are easy to store in any ERC-20-compatible crypto wallet like Ledger Nano S or Trust Wallet.
An Introduction to the Swipe Network
The Swipe Network is an ecosystem of DeFi applications and protocols in full development and just a few steps away from launching its mainnet. Swipe is working closely with Certik to obtain an audit for its smart contracts before the release.
Some of the apps and protocols that will be available on the Swipe Network include:
- Swipe Swap
- Swipe Finance (SwipeFi)
- Swipe Staking
- Swipe Governance
Those interested in accessing the network will be able to do so in exchange for 1 SXP token. Once they become part of the Swipe Network, they will have governance over all the DApps there as token holders.
This protocol is an automated market maker (AMM) that will enable users to swap between digital assets on the network and between the Ethereum and Binance Chain blockchains.
This decentralized lending protocol will enable users to lend and borrow several cryptocurrencies based on the Ethereum and Binance blockchains. Swipe Finance will have a dynamic APY on deposited assets and loans. Lenders will be able to withdraw their cryptocurrency at any time. Also, the borrowers will not have deadlines for paying back their loans.
This protocol will allow SXP holders to stake their tokens to secure the Swipe network. Stakers will also be able to vote using their staked SXP tokens.
SXP token holders will be able to make proposals regarding changes to the Swipe Network or any of its protocols. A proposal becomes eligible for voting if a user backs it with 300.000 SXP tokens. Users will get to register their votes in exchange for 1 SXP token and receive rewards for their participation.
The Bottom Line – The Ultimate Guide to Swipe
Swipe is one of the most promising projects in the cryptocurrency universe. Although the company has not always practiced clear and open communication, big industry names like Visa, Binance, and Coinbase support it unconditionally, showing that Swipe’s overall sentiment is more optimistic.
For now, Swipe is a multi-asset crypto wallet company with the dream of turning into an industry-leading authority, especially on the DeFi market. The upcoming launch of the Swipe Network should cement its credibility and fuel its aspirations even further.