Swipe Fundamental Analysis

Table of Contents

What is Swipe?

Swipe is a decentralized finance platform that enables cryptocurrency focused financial products powered by the Swipe token SXP. The company was founded in 2018 by Joselito Lizarondo with its mission to bring cryptocurrency interoperability with traditional finance. It does this by combining three main components of Swipe; 

  1. Swipe multi-currency crypto wallet 
  2. Swipe crypto debit card
  3. Swipe token(SXP) which powers the first 2

Swipe is great in this sense as the vast majority of crypto projects are focused on capitalizing on various issues within the crypto space but not looking outwards very much. Swipe on the other hand is looking to increase the adoption of blockchain technology while bridging the worlds of traditional finance and crypto. Swipe looks to accomplish this by providing easy made solutions that allow everyday payments to be made with crypto – fiat transfers. 

 

1. Swipe multi-currency crypto wallet

This component of the Swipe’s ecosystem should not go unnoticed. Unlike the other traditional crypto wallets on the market which simply allow you to only hold digital assets like Bitcoin, Ethereum, Litecoin etc. the Swipe wallet allows the holding of digital assets alongside fiat. Although this feature can be replicated by competitors, Swipe is one of the first to do this and the advantages of a wallet that allows both digital assets and fiat is unmatched. 

 

2. Swipe Crypto Debit Card

I’ll be going over the Swipe debit cards in more detail later in this analysis but essentially the Swipe debit card allows users to load their debit card with any of the supported cryptocurrencies in the Swipe wallet and then make everyday payments with cryptocurrencies while receiving cash back

 

3. SXP

The entire Swipe ecosystem is powered by the Swipe token SXP. Key feature of the SXP token are: reduced fees, staking, governance, rewards etc.

Swipe Token(SXP)

The Swipe token has several aspects to it:

 

Fees and Discounts

By using SXP on the Swipe ecosystem, users gain discounts on their transaction fees.

 

Governance and Staking

Token holders can make proposals and vote for protocol changes. 1 SXP is required to vote and 300,000 SXP is required to submit proposals. The swipe governance system will be able to adjust smart contract parameters such as:

  • Burn Rates
  • Reward Rates
  • SXP Requirement minimums
  • Transaction and trading fees
  • Interest rates
  • Adding tokens

Transactions

Individuals can use SXP to pay over 60 million merchants worldwide and transfer within Ethereum and Binance Blockchains. 

 

Swipe Staking

Swipe Staking is an on chain protocol that allows users to stake their SXP APY rewards as well as staking within the staking contracts allows them to vote within the governance system.

 

White Paper V2

The following information outlines a few key points that are outlined on the V2 Whitepaper which was released at the end of April. 

 

 

Swipe Ignition – Not too much information is provided but the whitepaper states: 

“Swipe Ignition enables users who have Swipe SXP-WETH or SXP-WBNB Liquidity Provider tokens to purchase new launchpad-type projects with discounts all on-chain in a fully decentralized method.”

 

Swipe Swap: is an automated marketing making protocol which allows users to swap tokens from the Ethereum and Binance chains and allows users to earn trading fees for providing liquidity. The end goal with Swipe Swap is to allow users to trade over multiple blockchains without a centralized authority. Similar to Ignition, not a lot of information is given but I will update this section as I learn more.

 

Swipe NFT: The White Paper states: “A fully decentralized NFT Marketplace that anyone can deploy NFTs on and list them for sale exclusively to purchase with SXP & SRT only. 5% of this SXP is burned automatically by the smart contracts and 10% goes to content creator royalties”.

 

Swipe API: The white paper states: “Swipe API, or known as Swipe Ramps, powers the world’s largest digital asset exchanges card payment infrastructure and fiat ramps with its robust 500+ endpoint library. Developers can leverage Swipe’s licenses, bank network, and partnerships to use its white label SDK’s to quickly go to market.”

Thoughts on Swipe Whitepaper V2: For starters, I’m glad to see them updating their Whitepaper and introducing a ton of new and ambitious features such as swipe Swap, swipe NFT, swipechain etc. The lack of information regarding these features indicates to me that how all of this is going to work has not been fleshed out yet and therefore development is still in its early stages. There being no dates on the roadmap is a little disappointing as well but I sense this again shows that they’re not confident on when all of this will be ready and therefore they don’t want to set unrealistic expectations as that usually does more harm than good. If all of this is set to be released in 2021 than Swipe is looking great for this bullrun as each of these will bring a ton of hype and new users to the platform. I’m especially excited to see what the swipeNFT and swipechain have to offer.

Token Supply Model

Team

Swipe is headquartered in the Philippines with operations in the United Kingdom and Estonia. In July 2020 it was announced that Binance acquired Swipe, with Swipe keeping its operational independence.

 

The Swipe Whitepaper claims the team has a wide range of backgrounds in tech from Google, Visa, and Apple to Samsung and American Express. Based on their linked in page, I didn’t notice these credentials but saw quite a few employees who are developers from the Philippines. At the end of the day I don’t care as much about their backgrounds and more so will be keeping an eye on the project to see if this team can execute flawlessly. Joselito tweeted in December 2020:

 

'I’ve been seeing a lot of '@SwipeWallet why aren’t you marketing more?' Let me explain: We can’t mass market until the services are near flawless. We would be doing ourselves an injustice. Patience. We have the blueprint. 'There’s a time and place for everything.'

I like this mindset a lot, the team has also mentioned their slow approach to things on their Medium as well. A project like this requires putting their heads down and working to make the product flawless before marketing it and so I’m happy to see them promoting this mindset. The lack of information regarding their team and their progress on the roadmap has me skeptical and worried but similar to all projects in crypto right now, proceed with caution in the long term but ride the hype in the long term.

Swipe Card

Swipe has 4 different cards: Saffron, Sky, Steele and Slate

 

Safrron: requires no SXP staking and gives cardholders 1% cashback in Bitcoin on all purchases and 100% rebate on Spotify Memberships

 

 Sky: Requires 300 SXP stake and gives cardholders 2% cash back in Bitcoin on all purchases in Bitcoin. 100% rebate on Spotify, Netflix, Amazon Prime

 

Steel: Requires 3000 SXP stake and gives cardholders 4% cashback in Bitcoin on all purchases with 100% rebate on Netflix, Spotify, Apple Music and Amazon Prime Memberships and 10% rebate on Travala and Uber purchases 

 

Slate: Requires 30,000 SXP stake and gives cardholders 8% cash back in Bitcoin on all purchases with 100% rebate on Spotify, Netflix, Apple Music, Hulu, and Amazon Prime Memberships and 10% rebate on Travala, Airbnb, Starbucks, and Uber purchases. Cardholders also receive on chain SXP(ETH) staking APR rates and up to $30,000 in referral rewards

 

Note: I’ve read several negative reviews regarding the cards from customers saying things like the cards never came in the mail or it doesn’t work etc. Additionally, I gathered this info from Swipe’s first white paper but I can no longer find the pictures or the info no the individual cards. This leads me to believe that I’m either doing a bad job of looking or the company has discontinued them. If anyone has more info on this, feel free to let me know.

 

Customer Benefits of Swipe Pay:

-Pay in over 30 different cryptocurrencies with no fees

-Send crypto to anyone in the world with imessage or Swipe Wallet for free

 

Merchant Benefits:

-Save up to 90% in processing fees, from traditional card/payment network

 

-No credit check required 

Conclusion

I say this a lot, and I’ll repeat it again, fundamentals don’t matter that much for this bull run. A prime example of this being doge coin which you can read my analysis on here. Swipe has some solid fundamentals, Binance has invested in them heavily, they have a good network setup with merchants, its a ambitious project with a token that has a ton of utility to it. All of this being said,  I’m very skeptical on the team as there isn’t much info on them as well as their white paper is more of a manual rather than giving any technical details of how their product works. I get the sense that this project has the potential to be something big in the long run but there isn’t a solid foundation that makes me confident enough to hold onto SXP through the next bear market, at least as of writing. It’s competing against massive conglomerates like Paypal and Square which have been in this space for much longer and have well more established brands and teams behind them. I’m very skeptical on the long-run potential of this project, but extremely bullish on the short term. 

Price Prediction

Short term: I expect to see a $50 price range for this bull run, placing SXP at a around a 4-5 billion market cap(based on Coinbase) which is realistic given that there are many other cryptos that are valued much higher but don’t have as much utility as SXP(also Binance invested cryptos pump hard).  Ideally I would love to see a $100+ price range but I’m not confident this will happen.

 

Long term: I can’t make a price prediction for the long term as I’m not sold on this company surviving the bear market. If they accomplish everything on their V2 Roadmap this year and everything is executed  flawlessly, then I will be confident in saying this is a 30-50 billion dollar company. Watch Swipe closely is my best recommendation. 

Rating

7/10

Pros

-Binance Invested

-SXP has a ton of utility

-Ambitious project with many layers to it

-Merchant partnerships lined up 

Cons

Lots of competition

-Marketing is still lacking

-Team has yet to prove themselves

-Whitepaper is vague and therefore I don’t have a clear understanding of how they plan to achieve their goals