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Tokens for cryptocurrency exchanges have emerged as a simple approach for exchanges to improve liquidity. Despite the stagnant global market, the past few years have proven particularly rewarding for the major exchange tokens, which have seen significant gains over the past few months.

In it, we take a deeper look at some of the most popular tokens for cryptocurrency exchanges, including their price action, usefulness, and general usage.

Binance Coin (BNB)

Binance coin (BNB) is undoubtedly the most popular Exchange Token as it is the native cryptocurrency for Binance, the world’s largest exchange in terms of volume traded.

Changpeng Zhao, CEO of Binance, has stated on multiple occasions that their goal is to “Gear BNB as useful as possible.”

The core goal and usage application for BNB is to reduce Binance trading costs. Platform clients receive significant savings if they choose to pay their trading costs in BNB.

Additionally, the token is the only way to participate in Binance Launchpad’s well-known fundraising activities. Individuals wishing to participate in these initial exchange offerings can only purchase the tokens on offer from BNB, creating significant demand for the exchange’s cryptocurrency. Binance Launchpad has seen numerous successful token sales since the beginning of the year, including BitTorrent, Fetch.AI, and Celer Network, which have had a significant impact on BNB demand. Binance just launched lottery draws to be able to participate in the future Launchpad IEOs.

FTX Token

FTX is a derivatives trading platform. The platform also has other business areas, such as a burgeoning NFT market.

The FTX token (FTT) is the backbone of the FTX ecosystem and rewards holders with fee discounts. The team developed incentive strategies to increase network effects and demand for financial transaction taxes while reducing circulating supply. The FTX token is a utility token.

Staking FTT has several advantages:

• Higher referral rates: FTT referrers receive a higher percentage of the cost of their referral
• Maker fee rebates: Stakeholders receive maker fee rebates (in addition to the standard FTT fee rebates). Stakers can spin the non-fungible Swag Wheel for a chance to win a free NFT that can be redeemed for FTX goods or resold on the NFT Marketplace
• Bonus Votes: Stakeholders receive additional votes in our surveys (in addition to the standard number of votes based on FTT held and trading volume)
• Increased Airdrop Rewards: Stakeholders get more SRM airdrops (and possibly other airdrops and earnings later)
• Blockchain fees are waived: stakeholders are entitled to a certain amount of free ERC20 and ETH withdrawals every day
• Stakeholders get tickets for IEOs hosted at FTX. Each week, 33% of FTX market fees are used to purchase FTT and then burn the token. FTT is bought and burned.

Huobi Token (HT) – Recent Binance Launchpad IEOs

Huobi is another prominent cryptocurrency exchange. The platform was founded in 2013 and was China’s largest digital asset trading platform at the time. It has received funding from well-known venture capital firms such as Sequoia Capital.

As revealed earlier this year, cryptocurrency exchange HUSD has launched its own exchangeable stablecoin.

Huobi Token (HT) has been launched with several intriguing use cases: one of them, like BNB, is lowering trading fees on the platform. It can also be used as collateral to become a certified OTC trader on Huobi. It can also be used as a voting method when deciding whether or not to add new currencies to the exchange.

Huobi unveiled the debut of Huobi Prime, a similar launch platform for blockchain projects. Huobi Prime, on the other hand, has said there would be an eligibility condition requiring potential investors to have an average of 500 HT daily for at least 30 days before the fundraiser. Of course, the measure will likely encourage more HT posture.

KuCoin Stock (KCS)

One of the reasons KuCoin gained popularity in early 2018 was that it contained lesser-known and smaller cryptocurrencies that larger exchanges refused to offer at the time.

Still, according to Coinmarketcap, the exchange has a daily trading volume of around $15 million. KuCoin Shares, the exchange’s native token, was launched. This includes an asset allocation and KCS token holders receive 50% of the exchange’s daily trading fees.

Interestingly, KuCoin recently announced that they intend to develop KuCoin Spotlight, a blockchain project launch platform similar to that of Huobi and Binance.

Token OKEx (OKB)

OKB is the native token of OKEx, another prominent cryptocurrency exchange. The utility token of the OK Blockchain Foundation is called OKB. There was no initial coin offering or public funding for the cryptocurrency.

OKB is an ERC-20 utility token that is expected to be implemented on OKEx’s public blockchain, OKChain, in the future.

One aspect to note is that OKEx implemented a token sharing mechanism where 60% of all OKB tokens were distributed to OKEx customers for free. The basic properties of the OKB coin are that it removes transaction barriers and increases productivity and performance within its network.

One thing to keep in mind is that investors with more than 500,000 OKB have the ability in escrow to rate and endorse listing candidates on the exchange, which is a useful feature.

Like the previously listed exchanges, OKEx has launched its own fundraising platform, OKEx Jumpstart. Blockcloud is their first planned token sale.

Token Bibox (BIX)

Bibox is not among the top exchanges in terms of volume, but focuses on the Asian market. In early 2018, the platform gained popularity when it started offering some of the most popular Asian tokens. It is also one of the most important marketplaces for the DAI stable currency.

The site also has its own cryptocurrency. It is marked as BIX and has some usage scenarios. First of all, BIX holders can benefit from lower trading fees – a model that, as we saw above, is widely used.

However, it also pays out 20% dividends depending on the net profit of the Bibox exchange. Bibox has launched its exchange-based fundraising tool, Bibox Orbit.

Token BitMax (BTMX)

BitMax is an online crypto assets marketplace that is largely unknown.

BitMax Token is the exchange’s native token and is denoted by the symbol BTMX. According to the white paper for the program “BTMX”does not in any way represent any interest, interest, right, title or interest in the company.” In addition, the token will not “entitle token holders to any promise of fees, dividends, income, profits or investment returns.”

Therefore, the main goal of BTMX is to act as an exchange and settlement medium between the participants of the BitMax ecosystem.

Other token exchanges to consider

COSTS

COSS is a digital asset exchange based in Singapore. Their basic idea is to bring all important trading functions together under one roof. According to Coinmarketcap, the daily trading volume is currently over $10 million.

It also has its own cryptocurrency, aptly named COSS token. It gives its holders a share of the platform’s trading fees and can be used to reduce trading fees, which is a common practice in our experience.

Crypto Bridge (BCO)

Crypto Bridge is the only one on the list that is a decentralized exchange built on the Bitshares platform. It focuses on small-cap proof-of-work (PoW) currencies.

Bridge Coin is Crypto Bridge’s native cryptocurrency (BCO). It can be mined, and those who own it get 50% of all trading fees.

What are cryptocurrency exchange tokens? appeared first on Coin Insider.