SWIPE (SXP) Breaks Out on Binance Acquisition News

SWIPE (SXP) Breaks Out on Binance Acquisition News

What is Swipe?

Swipe (SXP) is one of the growing platforms within the DeFi space. The platform provides users with Swipe’s Visa debit card and a multi-asset DeFi app. Swipe’s (SXP) DeFi app allows users to convert between cryptos, fiat, and stablecoins. Additionally, Swipe (SXP) assists businesses in issuing their own branded physical and virtual cards.

In July 2020, Binance acquired the majority of Swipe for an undisclosed amount. The acquisition was made to enable the two companies to partner in bringing together fiat and digital assets. In partnership, the focus was on crypto payments and purchases through traditional financial systems.

The Swipe network also powers Binance’s Visa Card, which enables users to make purchases with digital assets.

Binance Takes Over Swipe (SXP)

On Thursday, Binance announced that it is to acquire the remaining outstanding shares of Swipe. At the time of writing, Swipe’s Visa card allows users to spend crypto at over 70 million locations worldwide.

Upon the completion of the acquisition, Swipe founder and CEO Joselito Lizarondo will step down and leave Binance.

SXP Price Action

On Thursday, SXP rallied by 24.7% to close out the day at $1.93. SXP had struck a day high $2.04 in response to the news before easing back.

The upside on the day came in spite of a mixed day for the broader crypto market, which continued to struggle following Tuesday’s sell-off.

In spite of the Thursday breakout, SXP continues to sit well below its ATH $5.97 struck back in early May 2021. Year-to-date, however, SXP was up 160% to Thursday’s close.

On CoinMarketCap, Swipe’s SXP is ranked 166th with a market cap of $370m.

Looking Ahead

Now fully under the wing of Binance, the outlook has improved for Swipe (SXP). FTX partnered with Swipe (SXP) in early 2021 to launch the FTX Crypto Card. The FTX Card allows users to automatically fund purchases with FTX account balances. New business partnerships, coming off the back of the Binance network, would support a bullish year ahead for SXP. The more bullish forecasts are for SXP to hit $7 levels by 2024 and $10 levels by the following year.

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