What is a Token Swap?
A token swap is a process by which one cryptocurrency is exchanged for another at a predetermined rate. Unlike selling one coin to buy another, a token swap is the replacement of one coin for another, so it means that you are required to exchange the old coin for the new one, or you will lose value.
A token swap is not a simple rebranding, as that can happen without the participation of anyone holding the coin. With a rebranding, tokens might change names or have their ticker symbol switched to something else, but with a token swap, the underlying blockchain that supports the token is being changed entirely, and holders are compelled to take some kind of action.
Sometimes, if you are holding the tokens on an exchange that is assisting with the token swap, they will take care of the token swap for you. However, since it’s advisable to hold your own tokens in a wallet you control, you should be aware of how to handle a token swap, so that you can manage the…