How does Bitvavo handle token swaps?

Summary

A token swap occurs when a crypto asset is exchanged for a new version of the same asset, typically due to a contract upgrade, migration to a different network, or transition to its own blockchain. Bitvavo facilitates token swaps automatically for supported assets. This article explains what a token swap is, how it works, and what you can expect when a swap occurs on Bitvavo.

What is a token swap?

A token swap is the process of exchanging an existing crypto asset for a new version of the same asset. This can happen for several reasons, such as:

• The token’s smart contract is updated to introduce new capabilities.
• The token migrates from one blockchain to another.
• The project moves from a token-based model (e.g., ERC-20) to its own native blockchain.

When a token swap occurs, holders of the original token must exchange their tokens for the new version to continue using the asset.

How does Bitvavo handle token swaps?

If a token swap occurs for a digital asset supported by Bitvavo, we ensure that all assets stored in Bitvavo's hosted wallets are exchanged automatically. No action is required from you.

The process for a token swap on Bitvavo follows these steps:

1. Deposits are halted – To prevent users from sending tokens that may become invalid, we disable deposits before the swap begins.
2. Trading is halted – Trading is paused to ensure a smooth transition.
3. Withdrawals are halted – Withdrawals are disabled.
4. The token swap is processed – The existing tokens are exchanged for the new version. This process can take several days, depending on the project and blockchain network.
5. Trading, deposits, and withdrawals resume – Once the swap is complete and the new tokens are credited to your account, trading will reopen. Deposits and withdrawals may also be re-enabled, depending on the network’s stability.

How will I be informed about a token swap?

If a token swap is planned for an asset you hold on Bitvavo, we will notify you via:

• Email – You will receive an email with details about the swap.
• Our blog – Updates will be posted on the Bitvavo blog.

What do I need to do during a token swap?

You don’t need to take any action. Bitvavo handles the entire process for you. Your balance will be updated automatically once the swap is completed.

However, if you store your tokens in an external wallet, you may need to follow the project’s instructions to complete the swap manually. Always check the official communication from the project team to ensure you complete the process correctly.

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