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Swipe Wallet

latest release: 1.900 last analysed  1st December 2020
Custodial: The provider holds the coins
3.3 ★★★★★
1549 ratings
100thousand

Published:

Our last analysis is based on data found in their Play Store description and their website.
details below 

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Please help us spread the word, asking Swipe Wallet to support reproducible builds  via their Twitter!

Do your own research!

Try out searching for "lost bitcoins", "stole my money" or "scammers" together with the wallet's name, even if you think the wallet is generally trustworthy. For all the bigger wallets you will find accusations. Make sure you understand why they were made and if you are comfortable with the provider's reaction.

If you find something we should include, you can create an issue or edit this analysis yourself and create a merge request for your changes.

The Analysis

This app is a custodial offering:

SECURE STORAGE
Swipe users can have peace-of-mind knowing their assets are covered under a $100M insurance policy with our custodian. All User deposited funds are stored in cold storage with a trusted custodian. Having these funds in a cold storage wallet ensures our users that their funds are safe and easily accessible through the Swipe Network on the Swipe Wallet.

This contradicts itself. Being in cold storage should mean that it’s precisely not easily accessible via network. What’s on the network is by definition a “hot” wallet.

The website lists “coinbase | custody” and “BitGo” as custodians, which means you not only have to trust them but also two other services to make sure your and all the other clients’ funds are being accounted for with funds in their custody.

Anyway, this is all not verifiable.

(lw)

Verdict Explained

Custodial: The provider holds the coins

As the provider of this app holds the users coins, verifiability of the app is not relevant to the security of the funds!

This verdict means that the app might or might not publish source code and maybe it is even possible to reproduce the build from the source code but as it is custodial, the provider already has exclusive control over the funds, so it is not a wallet where you would be in sole control of your funds.

Custodial wallets might not be the worst option for all users.

  • Do your own research if the provider is trust-worthy.
  • Do you know at least enough about them so you can sue them when you have to?
  • Is the provider under a jurisdiction that will allow them to release your funds when you need them?
  • Is the provider taking security measures proportional to the amount of funds secured? If they have a million users and don't use cold storage, that hot wallet is a million times more valuable for hackers to attack. A million times more effort will be taken by hackers to infiltrate their security systems. Will they detect when for some software error a hacker is spending other people's money before the losses are unrecoverable?

The app cannot be independently verified. If the provider puts your funds at risk on purpose or by accident, you will probably not know about the issue before people start losing money. If the provider is more criminally inclined he might have collected all the backups of all the wallets, ready to be emptied at the press of a button. The app might have a formidable track record but out of distress or change in management turns out to be evil from some point on, with nobody outside ever knowing before it is too late.