What Happened: Joselito Lizarondo, the founder of the cryptocurrency card payment infrastructure platform Swipe, has burned all of his SXP founder tokens worth over $200 million.
Lizarondo said that the token burn was the largest in SXP history as it effectively destroyed over 17% of the coin's supply.
SXP gained 22.39% overnight to a high of $4.85, and its 24-hour trading volume surged 47% to $886 million, according to CoinMarketCap.
Why It Matters: Swipe is a platform that aims to form a bridge between the fiat and cryptocurrency worlds with its three main existing products: the Swipe multi-asset mobile wallet, the Swipe cryptocurrency-funded Visa debit card, and the Swipe Token (SXP).
The SXP token essentially powers the Swipe ecosystem as it serves as fuel for the Swipe Network and is used to pay transaction fees.
With version 2 of the protocol bringing new tokenomics to the Swipe ecosystem, Lizarondo opted to burn his entire founder supply of SXP tokens to increase the value proposition for token holders from a scarcity point of view.
“Why would I give up a probable billion dollars in the future? I am not motivated by money. I am motivated by running a successful business," said Lizarondo in a blog post.
In July 2020, leading crypto exchange Binance acquired Swipe for an undisclosed amount. According to Binance CEO Changpeng Zhao, Lizarondo burned all his allocated tokens without notifying Zhao.
“Never cashed out a dime. We somehow attract people who are not after money. Probably our biggest secret sauce. Respect,” commented Zhao on Twitter.
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