What Is A Swap?
In a few words, a swap is when a Coin or Token Blockchain is replaced by a new one.
There are many types of swaps and there is not a clear definition for each so we will explain the main two of the swaps Tradesatoshi had during its history as a Cryptocurrency Exchange.
Full swap: is when a Coin or Token moves to a new Blockchain and the old chain became obsolete, this type of swap usually has a deadline and all coin holders must move their coins or token to the new chain and after the deadline the old coin or token became obsolete.
Partial swap: is when a Coin or Token moves to a new one but the old Blockchain is still accepted as part of the Cryptocurrency , so basically is two Blockchain one coin, an example of this is the BNB token on the ETH Blockchain , BNB swapped into a new Cryptocurrency with its own Blockchain and the old BNB ERC20 tokens are still traded on many Cryptocurrency Exchanges.
Swaps also happen on the FIAT monetary system, for example recently Venezuela, they had many new monetary system in the past few decades because of hyperinflation, once the currency became inflated they issue a new currency basically removing zeros to make it more easy to use and to carry.
Why there are swaps?
The final decision is made by the team behind the Token or Coin and there are many reasons why they do this, usually this is announced by the Coin or Token team and that reason is explained to the coin holders.
Some of the main reasons why a coin or token is swapped is because:
Problem on the code that cannot be fixed.
Upgrades that are not compatible with the old code.
Coins with own Blockchain moving to tokens on other Blockchain like ETH or TRX.
Tokens on other Blockchain like ETH or TRX moving to its own Blockchain.
The Coin or Token will have the same name after the swap?
This is also up to the team behind the coin, in the majority of cases it will retain the same name and ticker, on other cases it will re-brand to a new name or ticker.
Will i receive the same amount of coins after the swap?
This will depend on the ratio set by the team behind the coin, most of the swaps the ratio is 1:1 but for some this ratio is different so after the swap the coin holder will receive more or less coins.
How is the process of swapping?
The team behind the coin is responsible on provide a complete guide and assist the holders to swap into the new Blockchain . The swapping process is more easy when the coin or token team work directly with exchanges and wallet providers so the holders on those platforms will receive the new coins or tokens automatically, unfortunately in some cases the coin or token team decide to do the swap outside exchanges and wallet providers so the swap process became more difficult for the holder.
Usually swaps are done this way:
Automatic swap done by the exchange or wallet.
Application where the holder send old coins and receive the new.
Website where the holder send old coins and receive the new.
Offline, where the coin or token holder needs to send directly to the team and then they send them the new.
Swapping coins for a holder that dont have an understanding on how Blockchain works have its risks, we advice you to contact the coin or token team before swapping by yourself.
Are exchanges or wallet providers in the obligation to do swaps?
Absolutely not, exchanges and wallet providers are not on the obligation on swapping the users coins, some of the reasons are because there is risks involving doing the swap and the old or new coins can be lost, the exchange or wallet provider need the cooperation of the token or coin team to assist on the swap and sometimes they refuse to help or provide the new coins.
Are exchanges or wallet providers notified by the coin or token team of incoming swap?
Usually yes, we get notification that there will be a swap and we assist the team on doing it as smooth as possible that the user even notice it.
Unfortunately sometimes the coin or token team don't inform us about the swap and they swap their coin and refuse to cooperate on swapping the coins on our site.
What will happen if a coin or token is swapping and i decide to leave them on Tradesatoshi?
Users needs to check our news page for updates, usually if we been notified about the swap and we will support it we will post about it on the news page, if this is the case then you can leave your coins on Tradesatoshi and they will be swapped automatically.
In the case that we will not support the swap, we will also announce it on the news page, and we will set a delisting date for the users to withdraw their coins and do the swap outside Tradesatoshi.
In the case that the coin team decide to do a swap and don't notify us, Tradesatoshi will contact the coin or token team and ask for a clarification regarding the swap, Tradesatoshi will put effort and ask the team to provide the new coins, if the coin team refuses to cooperate unfortunately the swap will not be possible and the coin or token will get delisted, if this is the case we advice you to ask the coin or token team directly.
Swaps are common within Cryptocurrencies, if you are a long term coin or token holder we advice you to always check for news about the assets you are holding so in the case of a swap you will not lose your investment.