What is a Token Exchange?
The process of transferring tokens from one to another (“Token Migration Platform Development ” or “token swap”) is a very important part of a modern crypto world.
Token swap appeared as a term to describe the process by which the balance of token holders is transferred from their to a new compatible one of a specific project. After the replacement, the tokens are effectively moved from one blockchain network to another.
Here are some pros of the process:
It is worth mentioning that 3 of the top 20 coins, , and have already switched to their own network.
Millions or even billions of dollars are involved in each migration, so the stakes are high. But despite this, the blockchain industry remains mostly ignorant of token migration and its consequences.
Token Exchange Features
Swaps are often carried out by projects that raise money through the crowdfunding method used to distribute tokens. Assets at this stage generally act as “substitution” for future tokens, which will eventually be used when the project launches.
For users and investors, their degree of participation in the Crypto Token Migration procedure varies, as a general rule, depending on where they store their assets. Storing coins on exchanges:
Coin storage in wallets
In practice, this procedure usually involves creating a key for a specific platform (for example, a key in the ) and sending tokens to the key address where they were initially stored after purchase before the network goes live (for example, example, the key).
Projects often include time frames during which users must exchange their tokens. On platforms like , these are strict deadlines, after which the tokens on the old blockchain will be “frozen” and will not be available to users.
Token Exchange Examples
Currently, three leading cryptocurrencies have successfully migrated to their blockchains.
Binance Coin was the last on this list to switch to its own network. By now, several projects have already announced the transition of the Ethereum blockchain to Binance Chain.
is one of the examples of such. The wallet has its own, available on the Ethereum network, and is also issued on the Binance blockchain. Therefore, it is assumed to be a unique solution for both cases. Check out our step-by-step guide on how to do it.
The risks persist despite attempts by exchanges to simplify token-swaps. Dialogue with the community is one of the ways you can mitigate a common problem: lack of awareness among token holders, which is, perhaps, one of the biggest risks.
Token Swap Platform Development are not “helpless” processes: users must trust those responsible for the project to implement the asset transfer according to plan. However, since token migration is a relatively new phenomenon, there is often no plan for its implementation.