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Phemex Crypto Blog: Learn the latest news, updates, and industry insights on bitcoin futures, bitcoin trading, crypto derivatives exchange, and related blockchain technology.

What is Swipe Coin (SXP): Power Behind the Cryptocurrency Payment Ecosystem

Swipe is a robust API platform that enables businesses to create cryptocurrency-to-fiat exchange card programs. Because Swipe takes on all regulatory, compliance, and network responsibilities needed to launch these programs, the process is sped up and made fuss-free for businesses. Businesses can tap on Swipe’s extensive connections of bank partners, major payment networks, direct licenses, and APIs to swiftly create customized card programs for their customers. This saves them time and resources, thus making Swipe an attractive platform to work with.

Swipe-SXP

As a company, Swipe believes in introducing cryptocurrency interoperability to traditional finance. Swipe was founded in 2018 by Joselito Lizarondo and acquired by Binance in June 2020. The team has professionals with previous experiences in PwC, American Express, Samsung, Visa, Apple, and Google. This greatly boosts the credibility of the Swipe team and may have helped them access partnerships with some of these payment networks.

In terms of technological infrastructure, the Swipe Network operates off-chain on the Swipe API, and on-chain using the Ethereum blockchain. Swipe is a fairly reliable platform boasting a 99% uptime for their APIs. They also demonstrate growing prominence as a platform, as they now support over 135 fiat currencies, in over 30 countries globally.

From a user’s perspective, Swipe’s key products are its Visa debit cards and multi-asset DeFi wallet that allows instant conversion between cryptocurrencies, fiat currencies, and stablecoins. Its Visa debit cards are categorized into three options: the Cryptocurrency card, Ether card, or USD coin card. The user is able to choose the card they prefer based on the type of cryptocurrency transactions they are likely to make.

swipe card

Swipe Visa Debit Card.

From a business or developer’s standpoint, Swipe’s products can be further classified by their technological functions into the Swipe API (Swipe Ramps), Swipe Ignition, Swipe Swap, Swipe NFT, and Swipe Chain. However, the latter two are still in the development stages.

What is Swipe Coin (SXP)?

As mentioned, Swipe Coin (SXP) is a DeFi token. It is the native cryptocurrency that powers the entire Swipe ecosystem and is considered to be a utility token because it allows access to Swipe’s products and services. For instance, business clients looking to utilize Swipe services must use SXP to pay processing and transaction fees.

The SXP coin also gives holders the authority to propose and vote for protocol changes on the Swipe Network. This means that all SXP token holders have a say in how the Swipe ecosystem operates.

SXP can also be used for retail payments. Thanks to Swipe’s extensive partner network, Swipe users can utilize SXP to pay over 60 million merchants worldwide and make transfers within the Ethereum and Binance blockchains.

There are also privileges for Swipe wallet and debit card users who hold SXP coins. For example, SXP token holders used to have exclusive eligibility to purchase the higher-tier Swipe debit cards. These higher-tier cards came with benefits such as Netflix or Spotify subscriptions, no foreign transaction fees, and discounts for Starbucks and Apple Music. The range of benefits was dependent on the user’s stake of SXP holdings in Swipe. However, these higher-tier cards (Swipe Sky and Steel) have since been discontinued in 2020.

SXP token holders also get up to 5% cashback and discounts on their transactions using Swipe.

What is the Value of Buying Swipe Coin (SXP)?

The value of the SXP coin comes from its utility in operating the Swipe Network and paying for Swipe’s services. Holding SXP also offers the benefits listed above for Swipe users.

Furthermore, there is a limited supply of SXP, which increases its inherent value. The maximum supply of SXP has been set at 300 million coins. Currently, this amount has not yet been reached, and more SXP is being issued. 600,000 SXP are allocated for company operations every month, 10,000,000 SXP is made available every year for the Swipe team, and 1,200,000 SXP is available for ecosystem rewards and incentives (this includes Swipe Reward Tokens).

However, once the maximum cap has been reached, there will be no additional issuance of SXP. Furthermore, the brunt of SXP will be burned on-chain until there are 100 million units left. Thus, the limited supply of SXP will diminish and its value will increase over time.

As of June 28, 2021, the price of SXP sits at $1.65, or 0.00005442 BTC. SXP’s market cap is $157 million, with a circulating supply of 95.2 million. The maximum supply is now at 239.6 million.

Price history of SXP

Price history of SXP cryptocurrency. Source: Crypto

What is Swipe Coin (SXP) Staking?

Staking is the process of validating transactions on a proof-of-stake (PoS) blockchain. By staking SXP coins, holders can earn Staking rewards in the form of Staking Reward Tokens (SRTs).

The way staking works is that token holders must hit a minimum balance of SXP. Once this requirement has been met, a node deposits that amount of cryptocurrency into the network as a stake. The size of the stake correlates directly with the probability that the node will be built upon for the next block. If the node successfully creates a block, the validator receives a reward.

In this case, SXP token holders are able to mine the Swipe Reward Token (SRT) exclusively with SXP when they use SXP-based staking products such as Swipe Swap and Swipe Staking. These Swipe products are currently still in development stages and more information will be made known about them at a later date. The Swipe Reward Token (SRT) has no maximum supply. It can be used on Swipe NFT for compounding rewards.

Swipe NFT is a fully decentralized NFT marketplace that allows transactions using SXP and SRT only. When the marketplace is ready, it may include digital assets such as digital art and other unique online items. Thus, it would be useful to gain SRT through staking SXP.

How Can I Buy and Store Swipe Coin (SXP)?

SXP is available as an ERC-20 token on Ethereum and as a BE-2 token on Binance Chain. This allows you to easily store SXP in any cryptocurrency wallet that support these two types of tokens. These include wallets such as Trust Wallet and MetaMask.

You may also find information on SXP exchange rates on cryptocurrency exchanges. This includes SXP to USD, SXP to BTC, and other exchanges.

What Differentiates Swipe from Other DeFi ecosystems?

Swipe’s multi-asset wallet and debit card work by allowing users to quickly convert cryptocurrency to fiat and subsequently make payments.

Swipe differentiates itself through its strong user experience design. It is meant to be accessible to users of all experience levels, or “grandma-proof.” This encourages the adoption of the Swipe wallet app and Visa debit card to store, manage, and spend cryptocurrencies.

Ease of use is important as Swipe targets the increasing amount of cryptocurrency holders looking to use their assets for everyday purchases. Swipe’s wide network of payments partners also allows high interoperability in making these exchanges, which is often challenging for DeFi ecosystems. Lastly, Swipe’s extensive presence and user experience have not been replicable thus far.

Conclusion

The SXP coin demonstrates great potential as a utility token for the Swipe Network. While it has yet to become fully mainstream, Swipe has expanded quickly with its network of partnerships and market presence. Its strong user experience and reliability also makes it a strong contender in the DeFi market for both business clients and end-users. SXP is also a proof-of-stake cryptocurrency, which means that it requires less energy to mine the coin. This is in contrast to traditional cryptocurrencies such as Bitcoin (BTC).

SXP prices have also been relatively stable compared to Bitcoin (BTC) and Ethereum (ETH). This is because of its primary purpose as a utility token. As such, SXP may be a good option for holders who believe in the future of DeFi ecosystems and want good liquidity.

However, as with all coins, it is still important to exercise some measure of caution. Swipe has not gained the market-wide acceptance it needs to become fully mainstream. The fact that Swipe is closely tied to the SXP coin also carries a certain risk. Doing your due diligence and analyzing price trends can help you make a more informed decision.


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