SXP Rockets 30% After Binance Announces Swipe Takeover, Defying Muted Price Action For Bitcoin, Ethereum, BNB, XRP & Polkadot

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SXP, the native token of Visa
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Card issuer Swipe, on Thursday, soared 30% following news that major exchange Binance — already a majority shareholder — would buy remaining shares in the company.

The cryptocurrency reached an intra-day high of $2.02 and then returned to $1.91 at 23:00 GMT.

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Its strong performance defied sluggish activity in the broader cryptocurrency market, with the top ten coins Bitcoin, Ethereum, BNB, XRP and Polkadot all trading under 0.5% over the past 24 hours.

Binance acquired a majority of Swipe’s shares in July 2020 before implementing the SXP Network, its cashback-earning Binance Visa card, which works like a debit card but allows users to shop with its digital assets. allows to do.

The exchange announced its intention to buy the remaining shares in Swipe through a statement without explaining what the move would mean for SXP token holders or swipe-powered cardholders.

Swipe also runs a white-label B2B program that aims to make it easier for crypto companies to issue their debit cards. Derivatives exchange FTX became its most high-profile client in February, although the FTX Visa card has yet to launch.

Following the completion of the share purchase, Swipe founder and CEO Joselito Lizarondo will “step down and leave Binance”.

However, Lizarondo said he will continue to be active as a major stakeholder in the Swipe blockchain – soon to be rebranded Solar – by achieving a larger governance position through his proof-of-stake SXP holdings, and “ To invest in construction projects on solar by launching the Solar Ecosystem Growth Fund”.

“Solar will become an energy efficient payment blockchain powering decentralized commerce applications,” He explained in a blogpost, “Solar value proposition enables plugins to be developed in JavaScript and TypeScript and built in Layer 1 formats to enable all scalability and smart contract-like features to be developed natively. The side chain will enable other features.”

Lizarondo acknowledged that after Binance became a majority shareholder, Swipe’s original vision of becoming a retail-focused card issuer like Crypto.com had been abandoned, with the company shifting its focus to corporate partnerships.

“Due to shareholder and senior leadership decisions, Swipe shifted its focus on products to more B2B commercial products with fees paid at SXP,” he said. “This is creating products that focused on Swipe, the company’s growth, and in turn removed some of the flagship products available.

“With this resignation, I am able to focus on SXP as a community member.”

SXP is up 42% year-on-year but is well below May’s all-time high of $5.87.

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