What is Sway Social (SWAY)?
Cryptocurrency and blockchain technology has often been billed as something that will change the world. This is true to some extent, but there exist a lot of scams out there that only exist to bilk money from investors. It’s an unfortunate reality of the cryptocurrency space.
With that in mind, we will examine one cryptocurrency project that has received some attention over the past few months. There has been some rumblings that this project is a scam while another, separate camp claims that this project will revolutionize social media. It’s an interesting discussion and one worth examining, especially for those considering an investment in this project.
What is Sway Social?
The general idea of Sway Social is surprisingly difficult to understand, which is not helped by the website offering a terrible description of the product. The general gist, however, is that Sway Social is simply a staking protocol that has some social media elements to it.
Basically, content creators (Sway Social calls them Metacreators for some reason) can create a staking pool around their NFT or lending model. Users can then stake SWAY tokens in these pools to earn money generated by the owner of the pool.
That’s pretty much all there is to Sway Social – it’s just another liquidity pool project. These projects almost always result in disaster because, at their core, they simply pay money to early investors with the money from new investors. It’s unsustainable and these projects typically collapse.
To expand on this point, Sway Social has not done particularly well. The price of the token has steadily decreased since its launch and the popularity of the token, which was never high to begin with, has steadily decreased over time.
Anyway, the next section will cover some of the problems we have with Sway Social.
Problems with Sway Social
There are a range of problems with Sway Social. These problems are large enough that we do not have much faith in this project. Some of the problems include the following:
The first problem with Sway Social is that it’s not a popular project. This is normal for any project that just launches, we understand that. Facebook was not immediately popular nor was Google.
However, Sway Social has not actually done anything to promote the project in months. The Twitter account is borderline inactive and there are no videos on Youtube promoting the project. A YouTube search for “Sway Social” brings up results for an Irish wedding named Sway Social.
That’s a big problem when the project has been around for almost a year. It’s an even bigger problem when the project is one that relies almost exclusively on attracting more investors to it.
Another issue we have with the project, and it’s a big one, is that it does not have a whitepaper. In fact, the website only has one page that sort of explains the protocol.
That’s not a good look for a project.
More concerning is that the description on the website makes little sense. Is Sway Social a staking protocol? Is it a social media platform? What do NFTs have to do with the project?
It almost seems like the person that wrote the website simply made random sentences with a bunch of crypto and DeFi words. It really does not make much sense what this protocol actually does from the website.
Inferences can be made by those familiar with the industry. However, anyone not as familiar with DeFi will be at a loss about this project.
Again, this is a problem because it scares people from investing into the project.
The founders of Sway Social are anonymous. It also appears that they have not locked their liquidity, which makes the odds of a rug pull extremely high.
Our general rule is to avoid DeFi projects that have anonymous founders. These projects almost always end with the founders running off with investor money.
In other words, anonymous DeFi projects equate to fraud.
This might be a controversial point to some, but it’s worth mentioning as a red flag – yield farms on DeFi are almost always scams. They typically offer a high APY to draw investors into the farm and then the founders drain the liquidity pool by minting, and then selling, their own tokens.
It’s simply not a sustainable business model. Many have compared it to a Ponzi scheme as old investors are typically paid with the money invested by new investors as yield farms have very limited options for generating revenue, especially the revenue required to pay the rates they need to become popular.
Is Sway Social a Good Investment?
No, this really is not a project worthy of an investment in our opinion. The biggest gripe we have is that the project does not even have a whitepaper. It also appears that whoever wrote the description of the project has a very limited understanding of DeFi.
Nothing on the site indicates that the team plans on taking this project seriously. It just looks like another scam to us.
The price history also does not look promising.
To put it bluntly, that’s the price history of a project that received some hype at launch and then rugged a few days later. It does have some random spikes, but don’t count on actually being able to sell your tokens at that price. Price spikes like that generally indicate some sort of artificial manipulation of the price, which is often done to draw more investors into the project.
Why is Everyone Talking About Sway Social?
First of all, not many people are talking about Sway Social. There is practically no mention of the project on Reddit and most of the discussion of it on Twitter comes from bot accounts.
The project is not nearly as popular as it appears on Twitter once you account for all the bot accounts. This is provable by simply looking at the market cap and 24 hour trading volume of Sway Social.
The market cap is $77,000 and the 24 hour trading volume is $15,000. Admittedly, these numbers aren’t completely worthless. But in the world of cryptocurrency and DeFi they are very small.
To summarize, no one is talking about Sway Social. It’s a small project with a very, very small user base as proven by the market cap and trading volume of SWAY token.
To summarize, Sway Social is a sort of interesting idea for a project. The execution of the project is horrible, though. It has no whitepaper, no roadmap, and anonymous founders that have done a very poor job explaining what this project is all about.
It’s an interesting enough idea that it could likely become popular with the right founders. Unfortunately, the founders are uninterested (or incapable) of turning this project into anything meaningful. The price and relevancy of this token will likely continue to sink until the project eventually fades into obscurity and joins the thousands of other failed cryptocurrency projects.