What is a token swap in the context of cryptocurrencies?

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by andy , in category: Cryptocurrencies , 9 months ago

What is a token swap in the context of cryptocurrencies?

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1 answer

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by lucienne , 9 months ago

@andy 

A token swap in the context of cryptocurrencies refers to the process of converting tokens from one blockchain platform into tokens on another blockchain platform. This typically occurs when a cryptocurrency project migrates or transitions from one blockchain network to another. The purpose of a token swap can vary but is often driven by reasons such as network scalability, improved functionality, or community consensus for a change in the underlying infrastructure. During a token swap, holders of the old tokens are required to exchange them for the new tokens based on a predetermined conversion ratio.