So, your token is being sent to a new blockchain… Far from an elaborate crypto scam, the decision to carry out this process, known as a “token migration” or “token swap,” has become increasingly popular among blockchain projects. Notably, two of the top 25 cryptocurrencies trading globally – Tron and EOS – are in the midst of such a transition, and at least two more top 30 tokens are expected to soon follow suit.
With millions – even billions – of dollars worth of tokens involved in each migration, the stakes are high. But despite this, the blockchain industry remains largely uninformed on token migrations and their implications.
In a sampling of experts, CoinDesk found that even industry leaders were sometimes unable to answer basic questions about the process. Nonetheless, much about token migrations can be discerned from those pioneering the shifts.
For those who have undergone such transitions, they often represent a difficult but necessary step in realizing their project’s vision. For Shawn Wilkinson, founder of decentralized storage startup Storj, which started its token migration in 2017, the rewards simply outweighed the risks.
“The idea is that you just need to rip the band aid off and be on a set of tracks that isn’t going to go off a cliff.” Often, the shifts are carried out by projects that begin by using the ethereum blockchain to raise money and distribute their tokens. Read more from coindesk.com…
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