Sweatcoin Review 2024: Can You Earn Crypto By Walking?

The obesity crisis is a pressing global concern made worse by sedentary lifestyles and unhealthy dietary patterns.

According to the Centers for Disease Control and Prevention, the U.S. obesity prevalence stood at 41.9% in 2017. The World Obesity Federation estimates that 42.7% of the U.S. population is obese, while 31.2% is overweight. More than half of the world’s population will be overweight by 2035, up from 38% currently, according to another estimate by the federation. 

Traditional methods of promoting exercise and well-being often struggle to instil lasting motivation in individuals. Amid the grind of daily life, finding time to visit the iron gods and hear the sweet metal clanks in the gym can often feel like an insurmountable challenge. Balancing family commitments, the demands of a job, and the needs of children can make prioritizing personal fitness a significant struggle. Indeed, more than 90% of new gym members typically quit after three months.

Sweatcoin hopes to change that by tying physical movement with rewards and gamifying a healthy lifestyle.

This Sweatcoin review will touch on how move-to-earn apps are gaining popularity, the company's move into blockchain technology, its native SWEAT coin and how you can purchase the token.

Sweatcoin Summary:

Sweatcoin is a move-to-earn app. The premise is simple: you walk and earn an in-app currency called Sweatcoin, which can be redeemed for various rewards. More recently, Sweatcoin has leveraged blockchain technology to tokenize movement where users can walk to mint SWEAT, its native currency. Unlike other move-to-earn projects such as StepN, Sweatcoin can be enjoyed completely free and with no up-front NFT costs.

The Key Features of Sweatcoin Are:

• Sweatcoin Wallet
• Sweatcoin App
• Moving and Earning
• Trading
• Learn to Earn
• Growth Jars to earn yield
• Daily rewards
• Engaging contests and challenges

The Rise of Move to Earn DApps

Fitness trackers can give you a dopamine hit because you can see where you're placed on a virtual leaderboard and whether or not you've hit your personal goals. Move-to-earn apps take it up a notch by rewarding your movement.

Move-to-earn fitness apps represent a digitized approach to promoting physical activity and enhancing overall health and well-being. They encourage individuals to engage in physical activities. While the concept itself isn't entirely new, move-to-earn applications simplify the process of earning rewards for exercise.

The incorporation of blockchain technology takes move-to-earn apps to the next level, offering users native tokens that may appreciate in value. Move-to-earn DApps leverage blockchain and smart contracts to incentivize users for physical activities and healthier lifestyles. This approach not only gamifies health and fitness but also introduces a decentralized and transparent system.

And, it's big business. The global move-to-earn fitness apps market size is expected to reach $1.2 billion by 2028. If you'd like to know more about M2E DApps beyond Sweatcoin, check out our article on the best Move2Earn DApps. 

What is Sweatcoin?

Sweatcoin is an impressive project with a strong foundation and “staying power” as it was hugely successful before it had any ties at all to crypto. Unlike other move-to-earn projects that come and go, Sweatcoin's origins date back to 2014 and was massively successful in Web2 with millions of active users before breaking into Web3. The premise of the app has been the same since its origins, rewarding users for walking, but back then, users were rewarded with points that could be spent in the in-app marketplace before crypto rewards were paid out. Now users can earn both!

Sweatcoin had already dominated app stores and has now evolved to become a move-to-earn juggernaut, incentivizing individuals to lead more active lives by turning steps into virtual currency. Simply put: the more you walk, the more you'll get rewarded. The financial backing for these rewards comes from brands, insurers, advertisements, and healthcare providers on the Sweatcoin platform.

In July 2022, Sweatcoin completed a $13 million funding raise, including a private token sale, to accelerate its move into Web3. Several blockchain investors joined, including Electric Capital, Spartan Capital, OKX Blockdream Ventures, Swissborg Ventures, and GSR Ventures. Existing investor Goodwater Capital also participated.

The Sweatcoin app, available for both Android and iOS, collects step count data from the phone's pedometer and cross-references it with GPS location to verify steps using a proprietary algorithm. Importantly, Sweatcoin asserts that it neither sells nor will ever sell user data. The only data collected includes phone numbers and email addresses, serving as keys to secure user accounts. This information is exclusively utilized to ensure account security and prevent unauthorized access.

Sweatcoin also emphasizes social connectivity, enabling users to connect with friends, follow others, and build a follower base on the platform. Sweatcoin has over 120 million users who are 20% more active after downloading the app. It has 600 partners, who provided $70 million worth of goods and services in the first quarter of 2022.

Despite the incentive of earning while walking or running, it's important to understand that the monetary returns from Sweatcoin are relatively modest, so don't expect to quit your day job.

Who Founded Sweatcoin?

Anton Derlyatka, Egor Khmelev and Oleg Fomenko co-founded Sweatcoin where Derlyatka and Khmelev currently serve as CEO and chief technology officer, respectively.

Derlyatka has also founded Talent Equity Ventures, a venture capital fund with a focus on talent/HR tech and wearable/fitness tech. Khmelev also co-founded Kidsout, a website where parents go to find and book babysitters. Fomenko founded Bloom.fm, a mobile music streaming service that attracted 1.2 million registered users in the U.K.

Zooming out, the Sweatcoin team comes from all over the world — UK, Russia, Azerbaijan, China, France and the Netherlands, speaking 22 languages in total.

From Sweatcoin to Sweat Economy

In a major shift, Sweatcoin utilized blockchain technology to tokenize the M2E movement that it is calling Sweat Economy. This approach allows individuals to contribute to a tokenized economy simply by engaging in physical activity.

Sweat Economy is built on the NEAR blockchain but the company aims to be multi-chain in the future. The platform's native token is SWEAT, whose primary objective is to incentivize individuals to engage in more physical activity, with the hope that this will play a role in enhancing the overall well-being of a wider audience.

Sweatcoin's step verification algorithm seamlessly counts your steps and then converts your Sweatcoin coins to crypto in the Sweatcoin Wallet. The crypto can be sent to exchanges and sold for fiat or redeemed for tangible goods and services.

In a bid to promote sustained physical activity, the foundation plans to implement an inactivity fee. This fee, charged by the decentralized autonomous organization (DAO), will be applicable to users whose activity consistently remains below a specified threshold. According to the company, this not only aligns with the foundation's mission of fostering consistent habits but also plays a role in contributing to a progressively decreasing rate of inflation of its native token. The specific details of this fee will be entrusted to SWEAT holders, who govern the DAO.

Movement Validators play a crucial role in validating the authenticity of movement data and updating the blockchain accordingly. The validator utilizes raw data received from the recording device and employs an algorithm to identify and prevent fraudulent behaviour, ensuring that only genuine movement is rewarded. As of the launch, SweatCo Ltd exclusively serves as the movement validator.

Looking ahead, there is a strategic initiative to decentralize the validation process, allowing third parties such as activity trackers, fitness equipment manufacturers, and fitness app developers to function as movement validators. These tracking services would be required to stake SWEAT to operate as movement validators. In return for their contributions, they would receive a percentage fee for processing all transactions. 

How Does Sweatcoin Work?

Utilizing Sweatcoin is a straightforward process.

There are two mobile apps, the Sweatcoin app and Sweat Wallet. The Sweatcoin app can be used alone by users who have no interest in crypto. The Sweatcoin Wallet is available for users who are interested in SWEAT crypto rewards. Most users are likely going to install both apps to double-dip on the rewards.

Users who simply download the Sweatcoin app will receive reward points in the form of Sweatcoins, which are non-crypto coins that can only be used to purchase goods and services from the in-app marketplace. For those who also want the crypto rewards (definitely worth it!), download the Sweat Wallet and link the two apps so you can earn both Sweatcoin points and SWEAT tokens.

After downloading the apps, users can sign up and grant the necessary permissions for movement tracking. The app then utilizes data on users' daily movements to reward them with SWEAT. Additionally, users have the option to stake their SWEAT to earn yield by locking them in Growth Jars in the Sweat Wallet.

Engaging in challenges is another way for users to boost their SWEAT earnings. An example is the October 2022 Sweatcoin race, where participants aimed to complete 250,000 steps to receive an extra 25 SWEAT.

The amount of steps it takes to mint 1 SWEAT will increase over time to give the token deflationary mechanics. As of 2024, it takes 5,098 steps to earn 1 SWEAT on the free version. Users can opt for the paid Pro plan to earn more. 

Sweatcoin Review: Features

Most of Sweatcoin's features are tied to its native wallet. Let's explore!

Sweat Wallet

The Sweat Wallet is a non-custodial, hot wallet with built-in DeFi services, such as staking and crypto-to-crypto trading, learn to earn, an NFT game and decentralized governance.

The Sweat plays a key role in a user's interactions with the Sweatcoin platform.

Speaking of wallets, check out our picks for the best hardware wallets, desktop wallets and mobile wallets. 

Growth Jars

Growth Jars provide users with the chance to earn yields by locking up SWEAT for specific durations.

Creating a jar is a straightforward process: users can navigate to the "Grow" section of the Sweat Wallet and select "Create Jar." After choosing a duration and specifying the desired amount for the jar, users can initiate the creation process. The process involves reviewing legal information and opening the jar, with a brief waiting period for the completion of the opening. Users should note a small gas fee (less than 1 SWEAT) will be charged to create a jar.

For Jars created post-October 2023, users have the flexibility to claim earnings in real time. Additionally, for those utilizing a flexible jar (coming soon), users can fill and empty the jar as frequently as they want. However, users with SWEAT in a CeFi jar cannot empty the jar until the lockup period concludes.

Sweat Wallet enables users to upgrade their jar from CeFi to DeFi; however, users can only upgrade to the same jar type.

Concerning token management, when a jar is created, users essentially provide their tokens to the Sweat Foundation. As an incentive, users receive the same number of tokens back at the end of the specified duration, along with additional earnings. These tokens are not locked up in a smart contract.

To generate earnings on SWEAT, the Sweat Foundation utilizes various revenue sources both within and outside the wallet. This approach contributes to generating yields for the Growth Jars.

Trade

Sweatcoin partnered with third-party trade provider, Orderly, to allow users to securely exchange various tokens. You can now exchange your balance to USDT, ETH, WBTC, NEAR, and others without leaving your Sweat Wallet — all with a minimum trading volume of $1.2.

The feature in Sweat Wallet accommodates the trading of a myriad of tokens available on the platform, providing users with the flexibility to select their preferred options. Upon confirmation of the token selection, users receive notifications once the trade successfully concludes.

Fees associated with the Trade feature on Sweat Wallet are transparently presented for user approval before confirming each trade. These fees are instituted by Sweat Wallet to cover the cost of services rendered.

In December 2022, Sweatcoin launched the Buy feature in the app to enable users to buy NEAR or SWEAT in the wallet via Moonpay.

Sweat Hero

Sweat Hero is a free-to-play tap game where you battle against other players to earn SWEAT. The best part? You're not required to buy an NFT to access the game; you just get one for free to play the game. The rules are simple:

• Walk every day to earn SWEAT.
• Play Sweat Hero against other users to get extra SWEAT.
• Get a higher score than your opponent to win.

The Legs NFT you collect for free have limited energy that depletes with each battle. You can either wait for it to regenerate, or watch an ad to get back in the game. This advertisement generates a small revenue for Sweat Economy.

As for how is the game played, simply tap on the screen to hit on the steps as they enter the step screen. The winner will take home the entire pot minus a 20% fee. The winnings will go into the winner's Battle Wallet, and they can be withdrawn from Battle Coins to SWEAT (without a transaction fee), exchanged for rewards or used to engage in more battles.

Learn and Earn

Sweat Economy has partnered with Metacade, which offers a platform for gamers, developers, and investors to build together.

Sweatcoin rolled out a short lesson in the Sweat Wallet app. If you choose to complete the lesson, you will receive a free seven-day trial of Metacade. The company will also throw in SWEAT to sweeten the pot for completing the lesson.

There are also other short educational lessons users can complete and earn SWEAT.

The company has done similar collaborations with car maker Fiat, Unstoppable Domains and AI-powered learning platform Kabuni.

Sweatcoin Marketplaces

In the Sweatcoin App, users can use their Sweatcoins to purchase things like earbuds, jewellery, clothing, subscriptions for things like Rosetta Stone, VPNs, discounts at Nike, and others along with purchase entry tickets for draws where they giveaway prizes like Playstations, Apple Watches, etc. 

In the Sweat Wallet, users can use SWEAT to enter draws to win Bitcoin, Ethereum, NEAR, USDT, Apple/Samsung Watches, gift cards, gym memberships, exclusive holidays, Tesla cars and way more. The prizes up for grabs in the Sweat Wallet are among the best we've seen in the industry.

What is Sweatcoin's SWEAT token?

SWEAT is the platform's native currency that is exclusively minted through physical movement. This means the more people sign up and use the Sweatcoin app, the more SWEAT will come into existence. The cryptocurrency is not only a means for the opportunity to win various rewards but also serves other purposes, including participation in NFTs, DAO votes, and unlocking features within the Sweat Wallet app.

In line with the consensus reached within the community, the Sweat Foundation will dedicate a share of its revenue to either acquire and eliminate SWEAT on the secondary market or purchase the token for distribution through Growth Jar yields. The more you put into your Growth Jars, the better rewards you have access to. 

Currently, you can create SWEAT only with your steps. However, the company plans to award SWEAT for other activities such as swimming, gym work and cycling.

Additionally, you can dive into the world of NFTs and games, where you can claim your complimentary Legs NFT. You can engage in battles against other players in Sweat Hero to earn SWEAT. Winners acquire Battle Coins, which are exchangeable for SWEAT. An interesting twist is that The Sweat Foundation collects and burns the battle fees, ensuring a net-deflationary nature to the game.

SWEAT Tokenomics

The Sweat Foundation made an offer for every Sweatcoin user to opt-in to claim 1 SWEAT for every Sweatcoin in their balance, without burning their Sweatcoins. The token generation event occurred on Sept. 13, 2022, when the Sweat Foundation minted enough SWEAT to match the sweatcoins of users who opted in. SWEAT was made available via its native Sweat Wallet. Sweatcoin claims it was the largest airdrop to activate wallets in history.

In July 2023, the Sweat Economy community voted to support the launch in the U.S. with about 690 million SWEAT and to enact a gradual burn of 1.6 billion SWEAT.

Each SWEAT will be more difficult to mint than the last. For example, at launch, you could mint 1 SWEAT by taking 1,000 steps. In September 2023, 4,500 steps created 1 SWEAT. In March 2024, the difficulty is set to increase to 5,500 steps, and it will be 7,500 steps in March 2025. The company says this preserves token utility and controls the rate of token release.

Today, SWEAT is trading at $0.0097, which represents a decline of about 90% from its all-time high, which it achieved in September 2022.

Where to Buy SWEAT?

If you're looking to get your hands on SWEAT, you can check out centralized exchanges like OKX, Bybit and Crypto.com. If you're more into decentralized exchanges, you can buy the coin through Uniswap, Ref.finance and Woofi.

Also, check out our top picks for the best crypto exchanges and the best decentralized exchanges.

How Much Can You Earn with Sweatcoin?

As noted, you can earn SWEAT by engaging in different activities. Currently, you can walk about 5,000 steps to earn 1 SWEAT, but the difficulty will increase over time.

As we mentioned, it is unlikely you will be retiring off of SWEAT and Sweatcoins, but the giveaways, rewards and prizes can certainly be life-changing. Someone won a Tesla Model Y, while another person won free vacations for two years.

How Does Sweatcoin Protect Customer Data?

Individuals can rest assured that their data remains under their exclusive control. Sweatcoin says it has never participated in the sale of user data, and this commitment will persist under the Sweat Foundation's governance.

Looking ahead, the Sweat Foundation is developing a platform that will empower SWEAT token holders to monetize their data independently. This initiative offers SWEAT holders the autonomy to engage with various entities, such as health insurers, granting them access to their movement data in exchange for compensation.

In addition, users can opt to contribute their data to a shared pool, facilitating the creation of global activity indices. Insurers, medical professionals, academic institutions, and investors can then purchase access to this dataset, with the individuals who created the data — the SWEAT holders — receiving corresponding rewards. To sustain this service, a nominal fee is collected by the DAO overseeing the platform.

How to Cash Out SWEAT?

It's important to know that Sweatcoin (the currency in the Sweatcoin app) and SWEAT (the crypto) are two very distinct items.

Sweatcoin operates within the app and it can only be used to redeem rewards. SWEAT, on the other hand, can be traded on some exchanges such as OKX and sold for fiat or users can swap it for other digital currencies directly within the SWEAT wallet.

Sweatcoin Review: Closing Thoughts

Sweatcoin is one of the largest move-to-earn apps that incentivize physical activity through a rewards system. The transition to blockchain technology and the creation of the Sweat Economy mark a significant evolution.

SWEAT, as the native token, is minted solely through physical movement, creating a tokenized economy where users contribute by staying active. The Sweat Foundation emphasizes its commitment to user data privacy with plans for a platform allowing SWEAT holders to monetize their data independently.

The Sweat Economy's features, such as Growth Jars for earning yield, trade functionality, Sweat Hero gaming, and Learn to Earn collaborations, contribute to a holistic ecosystem within the Sweat Wallet app. The decentralized governance model, with movement validators and inactivity fees, adds transparency and community involvement.

Despite the promising features and impactful mission, it's crucial to note that the monetary returns from Sweatcoin may be relatively modest. As a result, users should engage with the app with realistic expectations of rewards.