XSwap Protocol (XSP) – Full Review

XSwap Protocol is a decentralized exchange (DEX) that has made the news recently because it is the first decentralized exchange on the XinFin blockchain. The DEX is nothing special – it’s just a standard DEX with an automated market maker. 

It’s actually a Uniswap fork on XinFin.

The only special thing is that it is the first DEX on a particular blockchain, which will always grab some headlines and attention in the cryptocurrency community.

Note: This article is about XSwap Protocol on XinFin. XSwap is a dead project on what appears to be a dead blockchain (AbbeyChain). 

What is XSwap (XSP)?

As we mentioned earlier, XSwap is a DEX on XinFin. It has all the standard features you would expect to find a DEX that include the following:

• A bridge that allows users to transfer cryptocurrency coins to and from other blockchains. 
• Swap pools that allow users to swap XRC20 tokens for other XRC20 tokens. This is the primary purpose of XSwap.
• Staking pools for users to stake tokens to earn some extra income or other tokens. This is essentially yield farming with a single token rather than two tokens. 
• Yield farms that allow users to farm XSP using liquidity provider tokens from the swap pools. 

Again, it’s just a standard Uniswap fork on a different chain. There really is nothing special about the DEX itself. The important part is that XinFin finally has a DEX.

What is XinFin (XDC)?

XinFin is a layer 1 blockchain that is considered a hybrid blockchain. This means there is a public blockchain and a private blockchain, which allows for easier commercial use of the blockchain. 

It’s a delegated proof of stake blockchain that has smart contract compatibility. It was actually one of if not the first smart contract compatible blockchains to use delegated proof of stake.

One of the interesting features of XinFin is that it uses a business messaging protocol called ISO200222 that allows for seamless compatibility between legacy business servers and the modern blockchain. 

XinFin has not made the mistake of only targeting businesses, though. Remember, it’s a hybrid blockchain so consumers and enterprises will find utility in the features. 

Consumers can use it for all the normal features like DeFi and transferring value. Businesses can set up their own private blockchain that can be used to settle payments or track inventory. 

You should think of it as a combination of Ripple, a business server, and Ethereum.

Most importantly, XinFin is compatible with the Ethereum Virtual Machine (EVM), so it’s extremely simple for developers to fork Ethereum dApps on the XinFin blockchain. 

Who Founded XSwap Protocol?

XSwap Protocol was founded by Jay Sullivan and Tom Larsen in August 2021. Both of them have experience in the blockchain industry, which is reassuring. 

It’s also reassuring that they have decided to be public about their involvement with the project because that basically guarantees that the project is legitimate. 

Who would attach their face to a scam when it’s not necessary?

Not many people would do that, and cryptocurrency investors know that. 

Is XSwap Protocol a Scam?

The first question every cryptocurrency investor asks when they discover a new project is, “Is it a scam?”

Scams are extremely common in the industry, so it’s a perfectly reasonable question to ask. We are fairly certain that XSwap Protocol is not a scam because it has public founders.

There’s no way to know with 100% certainty, but having public founders makes the chances of it being a scam near-zero. 

To answer the question, XSwap Protocol is (likely) not a scam as the founders are public. 

XinFin, the blockchain that XSwap is built on, also does not appear to be a scam. We will admit that the project looked terrible when it first launched and did not gain much traction because it launched in the middle of the bear market. 

However, XinFin saw tremendous growth during the 2021 altcoin bull market and is almost in the top 100 for largest cryptocurrencies by market cap. 

Scams do not tend to last for two years and through multiple peaks nor do they usually have public founders, so we can fairly confidently say that XinFin is not a scam. It would be an extremely complex scam with public faces to it, which is something that does not happen in cryptocurrency outside of some rare exceptions. 

Now, is XinFin a promising project? 

We doubt it. But not because the project itself is bad. The project actually offers some small innovations in the cryptocurrency industry and solves a pretty big problem in the industry – high fees and slow transactions.

It’s delegated proof of stake, which means the transaction fees are basically zero and transactions settle within a few seconds. 

Sadly, that also means it lacks some decentralization that we like to see in blockchains.

The problem we have with XinFin, and by extension XSwap Protocol, is that the project does not do a good job marketing itself. 

To summarize, XinFin is a somewhat promising new blockchain that has suffered from a very poor marketing campaign – most people in the cryptocurrency community have no idea about XinFin despite the mainnet launching in 2019. 

That will likely change as XSwap Protocol slowly gains popularity and people begin to use it.

Just to reiterate, XSwap Protocol and XinFin are not scams. 

XSP Tokenomics

XSP has fairly simple tokenomics. The token has a max supply of 13,000,000 with the following allocations at the time of launch:

• Team and founders: 10%
• Token sale: 23% (unsold tokens are burned)
• Listing on centralized exchanges and partnerships with other dApps: 20%
• Staking rewards, farming rewards, etc: 47%

The token launched with a private sale of 1.5 million tokens at $0.0006/XSP followed by a public sale of 1.5 million tokens at $0.001/XSP.

XSWap Protocol Price History

XSwap Protocol had a massive increase in price immediately following the token sale in November 2021. The price went from $0.001/XSP to nearly $0.02/XSP within a few days. 

Those that purchased XSP during the public sale made quite a lot of money. Anyone that purchased it during the private sale made even more money.

Unfortunately, the price fell over the next few months and currently sits at $0.002/XSP, which is still higher than the public sale, but it’s a far way off from the all-time high seen immediately following the public sale.

This is somewhat common in the industry. Oftentimes what happens is that a marketing blitz occurs during the public sale to drum up support and then those that purchased during the private sale use the newcomers as exit liquidity. 

We are not saying that this happened, but it’s common practice in the industry.  

Is XSwap Protocol a Good Investment?

We would classify XSwap Protocol as a very speculative investment. It has a lot of risk because it’s on a smaller blockchain, but it does have a huge advantage as the only DEX on a particular blockchain. 

If XinFin goes parabolic, then you should expect XSwap Protocol to gain a lot of value. 

This seems unlikely as it appears that we are currently in a cryptocurrency bear market, though. 

That said, the price is so low that it may be worth putting some money that you are willing to lose into the project. 

It really depends on how much faith you have in XinFin. We can say that if XinFin does what Avalanche does, then XSwap Protocol could see tremendous growth like Trader Joe did when Avalanche rapidly appreciated in price. 

Where to Buy XSwap Protocol?

You can buy XSwap with a credit card on Indacoin. Though most buyers and sellers probably purchase the cryptocurrency on XSwap Protocol using an XRC20 token. 

It’s just easier that way and more in the spirit of a decentralized exchange to purchase the native token on the exchange itself. 

The fees are also much lower doing it that way. 

Closing Thoughts

That covers it for our full review of XSwap Protocol and a quick summary of XinFin. We like the idea of XSwap Protocol and the idea of XinFin. 

However, launching a competitor to Ethereum in the current cryptocurrency landscape may prove to be difficult, especially because the XinFin team appears to struggle marketing their blockchain to the market. 

Hopefully XSwap Protocol will serve as the catalyst for XinFin becoming a comprehensive home to decentralized finance.