Disclaimer: This article is not investment advice and I am not an investment advisor. Always do your due diligence when choosing to invest in a project, especially in the cryptocurrency space! This is part of a community program, so there is compensation being received in the form of tokens for this article.
The Switcheo Network is a decentralized exchange built on the NEO blockchain. This is like EtherDelta or Radar Relay on the Ethereum blockchain. Decentralized exchanges are great because they provide additional liquidity to cryptocurrencies.
One current problem with NEO tokens is that up until recently, only 1 or 2 exchanges offered them to trade. This causes issues with liquidity and slows down adoption of the platform. A decentralized exchange solves this issue and allows tokens to be exchanged as soon as they are in your wallet and transferable. This means Switcheo has a very strong use case.
Another benefit of a decentralized exchange is that you maintain full control of your funds while trading. This removes the potential for an exchange to take your funds and run, or being shut down. Mt. Gox is a classic example of the potential dangers of holding cryptocurrencies on an exchange, and BitGrail is a more recent example.
Switcheo is doing a community airdrop, so register to their mailing list using this referral link and we both get 200 SWH tokens!
The Switcheo Token (SWH)
The Switcheo token operates on the NEO platform and is a NEP-5 token. If you are familiar with Ethereum, you have likely seen ERC-20 tokens mentioned. These names just refer to the characteristics of the token and also indicate which blockchain/wallets they are compatible with. Since this is a NEP-5, it can be stored in a NEO wallet. If you need a NEO wallet, check out the guides on creating a NEON wallet or NEO Tracker wallet.
The SWH token will be used for a discount (50%) on trading fees. The tokens used this way are also burnt when collected It will also be a base for all trading pairs and is the primary means for cross-chain transfers. There is also mention of staking, so exchange fees may be distributed to SWH holders when staking begins.
Switcheo ICO Details
The Switcheo ICO will start on the March 16th, 2018 at 8PM Singapore Standard Time. Assuming no major market shifts in the NEO/GAS price, 1 NEO will get you 9,344 SWH, and 1 GAS will get you 3,216 SWH. The public sale hard cap is $1.2Mil and represents 10% of the total token supply. A breakdown with more detail is below.
SWH tokens will begin trading on the Switcheo exchange on March 19th, so that’s only 3 days after the public sale. As mentioned before, this is one benefit of a decentralized exchange. Expect a lot of other NEP-5 tokens to be tradable on this day as well.
There is a whitelist, but registration closed within 24 hours and it is now a wait list. The demand is somewhat high for this ICO. This is expected since it would be the first DEX live on the NEO blockchain.
If you want some SWH tokens, but aren’t sure about contributing money, use this referral link! We will both get 200 SWH tokens. You will then get your own referral link and can earn more.
The Switcheo team currently consists of 4 employees and 2 advisors. The 4 members have prior experience working together, which is nice to see. They have a solid background in development experience and have founded a couple of other companies. Since a DEX is more development focused they should be able to do quite well with this platform.
The advisors are Steven Pang and Yingyu Wang. Steven has a strong background in blockchain and cryptocurrency investing/advising. Yingyu has a strong legal background, so these both compliment each other well and should prove beneficial to the project.
The Switcheo Network is a very promising project. NEO is in need of a DEX and they will have a great first-mover advantage if they can meet their target of March 19th. Be sure to check out guides on staking NEO for passive income and creating a NEO wallet for NEO focused guides!