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What Is Switcheo Cryptocurrency?

A lot of cryptocurrencies are undergoing change right now. We’ve seen a stronger focus on decentralized exchanges, which will remove the need to deal with centralized entities altogether. Switcheo Network is one of those projects which can make a rather large impact moving forward.

The Concept of Switcheo

As one would expect, Switcheo was built on top of the NEO platform. This new approach to creating decentralized trading solutions will certainly attract a lot of attention from NEO enthusiasts. The purpose of this project is to manage the entire trading experience on-chain, which should provide an experience similar to centralized exchanges without the need to rely on third parties.

Switcheo’s Specs

The main purpose of this decentralized exchange is to let people trade all of their MEP-5 tokens. Once the ICO ends, these new currencies should be automatically listed on this trading protocol, which is a rather intriguing approach. This will be achieved through Switcheo’s Dynamic Call function. Whether or not listing ICO tokens on a decentralized exchange so quickly is a good idea remains to be determined.

Although Switcheo is not the first project to focus on building a NEO-based decentralized exchange, the company has a slightly different focus. Its main priority is providing a secure and convenient user experience and being cross-chain compatible as quickly as possible. Speaking of which, the developers are currently looking to introduce compatibility with Qtum, which is a rather interesting choice, all things considered.

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On the trading fee front, Switcheo will charge between 0% and 0.5% for both market makers and takers, depending on specific market conditions. It will be rather interesting to see how that plays out exactly, although it seems evident this structure is more than fair given the lack of centralized entities. Projects like these still need to generate revenue, and it seems using this approach will work best for all parties involved.

The Switcheo Token

As one would expect, this decentralized exchange project has its own currency, known as Switcheo Token or SWH. This token will be used for cross-chain swaps, as well as serve as “gas” for all operations on the network itself. There will also be an additional base trading pair linked to SWH, which should improve its overall liquidity. These tokens will also grant users a 50% discount on fees, which makes it well worth looking into.

The Road Ahead

Even though it seems this decentralized exchange is nearing completion, there is still work to be done. As of right now, the Switcheo exchange is being tested on a testnet, with the mainnet launch scheduled for this month. It seems the exchange itself will go live in a few days, although no exact date was confirmed at the time of writing. QRC20 token trading will go live in Q2 of this year, with ERC20 tokens to be added in Q3. Cross-chain trading won’t occur until late 2018, but it’s something to look forward to.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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