The Swapy Network is  one of the few blockchain-based projects that actually try to solve a problem rather than just make waves in the crypto space. In the following lines, we’ll discuss the project’s prospects and provide you with some details concerning the upcoming initial coin offering (ICO) event.

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What Does Swapy Network Try to Solve?

The Swapy Network is a complex project that plans to create a blockchain network that would host three D´Apps (Decentralized Applications): the Swapy Exchange, Swapy Financial ID, and Swapy Data Market. All three products are a combined solution to make credit cheaper and accessible to all.

Even today, when it seems that most of the economic theories and approaches have been put in practice, many people cannot enjoy easy access to Loans at decent rates. We’re talking here mostly about the developing countries. There are more factors that maintain this tragic situation – some of these are:

• High interest rates in the emerging markets – the basic and real interest rates are much higher in the developing countries because of several economic reasons, making it difficult for average persons to obtain decent credits. On the other hand, developed countries offer zero and sometimes even negative rates to encourage loans and spending. In the end, billions of people worldwide continue to be underserved credit consumers.
• Information asymmetry is another serious challenge that makes the credit market unfair. Today, most of the credit-related decisions by banks and financial firms are based on a mix of data and algorithms. Unfortunately, data is not equally accessible to all credit market participants, which negatively affects the industry.

Besides, many people remain unbanked because they cannot prove a regular salary that would make them eligible for loans. For example, in Brazil, which is the country of origin of the Swapy Network founder and CEO Ed Rodrigues, 40% of people cannot access credit – that’s more than every third person.

The Swapy Network comes to bring some balance in the credit market by connecting borrowers, creditors, data producers, insurers, and other players into an open source and decentralized network available worldwide. Thus, people from developing countries will enjoy much lower interest rates given that Swapy’s creditors will mostly derive from wealthy nations. The network has a global approach, and this is great for keeping fairness.

Swapy Network Applications

As mentioned, the Swapy team plans to create three primary applications based on the blockchain protocol. Here is a sentence about each one so that you could visualize their features:

• The Swapy Exchange – this is the platform that will connect investors from developed countries with credit companies from emerging markets that are seeking to raise capital at lower costs. All the contracts inside the system will be calculated in US dollars, but the fees will be paid in Swapy tokens, which we’ll describe below.
• The Swapy Financial ID – this app is to be developed to solve the second key problem – info asymmetry. The tool will use blockchain’s benefits to streamline the process of “credit history” creation.
• The Swapy Data Market – the team expects that the individual data from the Financial ID app will generate huge volumes of info segments, which will ultimately be available to all creditors no matter their size and reputation.

The Swapy ICO

The Swapy Network has a great plan to bring fair credits to underserved users, but it has to raise capital before that happens. Thus, the team decided to conduct an initial coin offering that would begin with a pre-sale period on March 19 of this year.

The pre-sale period, where investors can buy Swapy Tokens at discount prices, is split into three phases:

• Phase 1 – investors will get a 15.30% discount, paying $0.55 per token.
• Phase 2 – the discount will be 12.31%, which means the price per token will be $0.57.
• Phase 3 – investors will pay $0.60 per each token, enjoying a 7.69% discount.

The company plans to raise $15 million during pre-sale and another $15 million during the ICO itself. The crowdsale will be held from April 26 to May 26 and will also be divided into three phases.

Given that the Swapy token, with the ticker SWAPY, is an ERC20-based token, token purchasers can buy it with Ethereum only.

Swapy’s ICO is an excellent occasion for early contributors, especially for those who target the pre-sale period. Some reputable venture capital funds have already jumped in the game, such as Draper Associates or Investar Financial.

The project is endorsed by Tim Draper from Draper Associates and blockchain star Don Tapscott, which boosts contributors’ confidence.

“Blockchain will fundamentally change the way we access credit. Proud to be supporting Swapy Network as they make that vision a reality,” Tapscott said.

It’s worth mentioning that Brazil and US citizens are not allowed to participate. This also refers to Mainland China residents. Every investor should be ready for KYC/AML principles.

In conclusion, Swapy is definitely something to watch. You can monitor the ICO on the official website.