Visa Cryptocurrency

SXP Rockets 30% After Binance Announces Swipe Takeover, Leaving Bitcoin, Ethereum, BNB, XRP & Polkadot In The Dust

SXP Rockets 30% After Binance Announces Swipe Takeover, Leaving Bitcoin, Ethereum, BNB, XRP & Polkadot In The Dust
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SXP, the original code for Visa

Fifth
Card issuer Swipe surged 30% on Thursday after news that Binance exchange – already a major shareholder – will become the company’s sole owner.

The cryptocurrency reached an intraday high of $2.02 before easing back to $1.91 by 23:00 GMT on December 30, 2021.

Its strong performance challenged sluggish activity in the broader market, as the top 10 coins of Bitcoin, Ethereum, BNB, XRP and Polkadot all moved less than 0.5% in the past 24 hours.

Binance previously acquired most of Swipe’s shares in July 2020 – a move that allowed it to launch the SXP-powered Binance Visa card, which functions like a debit card but allows users to fund purchases with their digital assets.

The exchange said in a statement that the exchange will now buy shares outstanding in Swipe. He did not elaborate on what the development would mean for holders of SXP tokens and holders of cards issued by Swipe.

Swipe also operates a B2B White Lab program that helps third parties launch debit cards backed by cryptocurrency. Derivatives exchange FTX became its most popular client in February, although the FTX Visa card has yet to be launched.

The exchange said that after completing the stake purchase, Swipe founder and CEO Joselito Lizarondo “will step down and leave Binance.”

However, Lizarondo plans to remain active as a major stakeholder in the Swipe blockchain – now renamed Solar – by taking a senior governance position by proving its ownership of SXP, and by launching a “Solar Ecosystem Growth Fund to invest in building projects on solar energy.

“Solar blockchain for payments will become energy efficient powering decentralized commerce applications,” he explained in a blog post. “Solars’ value proposition enables plugins to be developed in Javascript and Typescript and embedded in Layer 1 formats so that all scalability and smart contract like features are developed locally. Side chains will enable other features.”

Lizarondo acknowledges that Swipe’s original vision of becoming a retail-focused card issuer like Crypto.com was abandoned after Binance became a major shareholder, as the company turned its attention to solutions and back-end partnerships.

He noted that “due to shareholder and senior leadership decisions, Swipe has shifted its product focus to more two-dimensional commercial products with fees paid in SXP.” “This led to the creation of products focused on Swipe, and the growth of the company, thus removing some of the key products that were available.

“With this resignation, I will have the ability to focus on SXP as a member of the community.”

The value of SXP has increased by 158% over the past year, but it is still well below its all-time high of $5.87, which it reached on May 3, 2021.

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