If you are a cryptocurrency investor, trader or are just looking to enter into the crypto markets’, then you will know the struggles of searching through the markets looking for the next big investment. If you have been following the markets recently you may or may not have heard of a project known as Switcheo. Switcheo has only recently completed their ICO and within a few weeks their token has increased by around 400% at the time of writing. But what is Switcheo?
What is Switcheo
Switcheo is the first ever decentralised exchange to run on the NEO blockchain. Switcheo is one of the first NEP5 tokens and is part of what can only be described as the rise of NEP5 tokens. Switcheo is certainly one of the most exciting projects which will run on the NEO blockchain.
Switcheo had their ICO on 17th March 2018. They raised their max cap of $8,700,000 within 24 hours. There was not too much hype around this project given that they have a fairly small following on social media in comparison to similar projects.
Switcheo did however, have a working product which was a big selling point and most likely what helped them conclude their token sale so quickly. The testnet was available to use throughout the ICO whilst the mainnet was being finalised. The mainnet is now available and users can trade most NEP5 tokens with the trading pairs NEO, GAS and SWH tokens.
Switcheo was designed as they saw the growing popularity of NEO based projects and wanted to offer a way for investors to trade these tokens, without the need to rely on centralised exchanges given the growing difficulty to get a token listed on popular centralised exchange. Not to mention the security risks that come with storing funds a on centralised exchange. Switcheo combines security with ease of trade and their aim is not just to compete with other DEX’s but to compete with the likes of Binance and Kucoin.
Why a decentralised exchange?
Decentralised exchanges are going to become more and more popular as more users and investors begin to enter the markets. Centralised exchanges have been the go to for a while now but they do come with inherent security risks. On a centralised exchange users log into an account where their funds are stored and the exchange is in charge of keeping those funds secure… should the exchange be hacked or the owners decide to steal the funds, the users is pretty much helpless to preventing that.
Another issue with the dominance of centralised exchanges is how long users have to wait to be able to trade a token after participating in an ICO. Tokens can take a long time before they are listed on an exchange and some may never make it on to some the more popular exchanges.
How will Switcheo solve these issues?
The issue so far with decentralised exchanges as they are often quite slow and quite difficult to use, as a result of this they do not achieve much trading volume. Switcheo is looking to address this directly with a simple exchange which is laid out very similar to how most other exchanges.
Switcheo is a decentralised exchange meaning they manage to overcome both of the security risks associated with centralised exchanges. By allowing users to access their funds directly with their private key, the funds remain on the users own wallet which they control the private keys for so the exchange has no way of accessing these funds. This also means the funds are not stored anywhere but on the users wallet meaning that the exchange is far less susceptible to hackers.
Is Switcheo easy to use?
Users will input a trade (buy or sell) on the Switcheo platform, this creates the trade in the form of a smart contract. This is then broadcasted to the network and everyone else on the exchange is able to see all the trades as they would on any other centralised exchange. Switcheo is simple to use and is laid out like most other centralised exchanges meaning you do not need to learn a completely new way of trading.
Switcheo token (SWH)
The Switcheo native token, SWH, can be used to pay the trading fees on the exchange, any fees which are paid in SWH will be at a reduced rate and the SWH is burned. This will in time reduce the circulating supply of the SWH token, similar to Binance. This has helped to increase the value of the Binance token over time and should work the same for Switcheo should they increase their trading volume.
1,000,000,000 SWH Tokens may be minted in total, and no additional tokens will be minted in future.
The allocations for SWH are as per follows:
20% (200,000,000 SWH Tokens) will be allocated to the Public Sale;
48.3% (483,000,000 SWH Tokens) have been allocated to Strategic Partners;
25% (250,000,000 SWH Tokens) will be reserved for the Switcheo Team to further incentivize development of the Switcheo DEX, and the tokens will be vest monthly on a 2 year schedule with a 3 month cliff; and
6.7% (67,000,000 SWH Tokens) will be reserved for Marketing Campaigns & Official Partnerships.
Switcheo was listed on coinmarketcap as of 20th April 2018, the circulating supply is relatively low in comparison to the total supply, 386,102,180/1,000,000,000. Also the current price gives this project an extremely low market cap. If this project can even reach a small amount of trading volume then the SWH price is sure to continue increasing.
Switcheo Official site
See our guide on Switcheo v NEX