What is a token swap? - coininsider

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What is a token swap? - coininsider

Post by magic8ball » Wed Jul 04, 2018 7:36 am

In the month of June of 2018, a number of cryptocurrencies (such as EOS and Tron) underwent what is called a ‘token swap’ – where one digital asset is exchanged for a fully fungible counterpart. But what does this process mean for investors, and what does it involve?

In the physical world, fiat currencies endure ‘swaps’ or ‘replacements’ when regulators introduce new denominations, print a new version of a banknote, or ‘deprecate’ (cease producing or supporting) a certain denomination. In such cases,

In such cases, transacting parties can typically either use old banknotes in conjunction with new ones (as newer notes replace older designs and denominations) or can approach a bank to replace or reconstitute their cash.

In some cases, regulators may even introduce different forms of banknote – sometimes colloquially called a ‘star note’ when a particular denomination is misprinted.


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