Author's article by Pavel Gromov, trader and author of the telegram channel "Chief in Crypto".
OnToday, according to Coinmarketcap, there are about 2400 different cryptocurrencies and tokens on the market, each of which is created for specific goals and objectives, for example:
All of them can be used asan investment, speculative or payment instrument, however, there is another class of tokens that has a narrower specialization, but is no less popular.
Today we will look at exchange tokens as a classdigital assets that can be invested in or used within the exchange ecosystem, receiving certain privileges. Their purchase is especially beneficial for those who are regular users of the exchange - trading or exchanging cryptocurrencies. Thanks to the use of exchange tokens, trading and other commissions can be significantly reduced.
1. Binance Coin
Binance Coin (BNB) - internaltoken of the Binance cryptocurrency exchange. BNB was created in mid-2017 based on the Ethereum network (ERC-20 standard) and was distributed during the ICO. The token emission amounted to 200,000,000 BNB, of which half was sold as part of the token sale, and the remaining tokens were distributed as follows: 80% reserved for funding the exchange, 20%, as a bonus, went to the first investors.
You can buy a token or trade it not only on the Binance exchange, but also on other platforms: KuCoin, HitBTC, Gate.io, BitMax, BitForex, DragonEx, LiveCoin, Kuna and others.
Using the BNB token you can pay for tradingcommissions and receive discounts, make internal transfers, pay for services or make purchases from partner companies of the exchange. Trading commission discounts are provided as follows:
From 2021 the discount program will stopto act, but according to Binance executives, in the future the use of BNB tokens will be available on the sites of the exchange’s partners, as well as within the framework of other company projects.
The value of the BNB token lies in its deflationary model, which is formed by several factors at once:
- Quarterly burning of the token, in order tosupport against depreciation. The exchange plans to leave in circulation no more than 100 million BNB. For this, 20% of the quarterly profit is allocated, which is used to buy tokens from the market for their subsequent burning. At the moment, already destroyed 14.5 million BNB. Burning occurs from 12 to 17 of the month following the quarter: April, July, October, January.
- Widely used not only on the stock exchange, but also in more than 30 partner projects, including services for travel, entertainment, financial services and even the purchase of real estate.
- A huge number of exchange customers usingtoken. In addition to the natural increase in the number of customers, Binance also carries out market expansion, buying other exchanges in promising regions, for example, Indian WazirX or opening additional offices, for example, in Ukraine.
More than 40% of BNB token trading takes place on the exchangeP2PB2B, Binance accounts for just over 15%. Binance Coin is traded in pairs with more than a hundred tokens, currencies and cryptocurrencies, including: BTC, USDT, ETH, TRX, USD, EUR, RUB, UAH and others.
The daily trading volume of the token is more than $ 223 million, which makes it not only the most liquid exchange token, but also one of the most liquid assets in the cryptocurrency market.
2. UNUS SED LEO
UNUS SED LEO (LEO) - is an internal tokenBitfinex cryptocurrency exchange. LEO was created in May 2019 on the basis of the Ethereum network (ERC-20 standard) and was sold during the IEO on the “parent” exchange. A little later, the token was zalistin on the exchanges Okex, Gate.io, DragonEx and others. According to the results of IEO (primary exchange offer), about $ 1 billion was raised. The token issue amounted to 1 billion LEO, and the token was sold at the rate of 1 LEO = 1 USDT.
The LEO token was created in order to provide Bitfinex exchange customers with the most comfortable and loyal trading conditions. Opportunities that the exchange provides for token holders:
A 15% reduction in trading commissions for all token holders, including for trading in stable blocks.
In the exchange's credit service, clients will be able to receive a 0.05% discount on the commission for every 10,000 LEO in their account. The discount cannot exceed 5%.
Discount on depositing and withdrawing funds from the exchange.The discount is available for both withdrawals in cryptocurrencies and fiat. Holders of more than 50 million LEO receive a 25% discount on deposit and withdrawal fees. Large investors can withdraw up to $2,000,000 monthly without additional fees, provided they own LEO tokens worth more than $50,000,000.
LEO tokens are burned by the exchange monthly, for this27% of iFinex's monthly profits are allocated. The burning is carried out in order to maintain the value of the token and reduce inflation. The company’s management is also considering 2 more options for allocating funds for combustion:
80% of the funds that were and will be returned after loss as a result of hacker attacks will go to the burning of LEO tokens.
Part of the money from commissions collected in LEO.
Despite the popularity of the token and its highliquidity and reputation of the Bitfinex exchange are alarming to many investors who could invest in the token. In December 2019, the US Attorney General's Office announced that the LEO token may fall under the definition of “securities,” which could likely lead to regulatory scrutiny. Perhaps this is the reason why more than 85% of tokens are traded on the DragonEx exchange and only 5% on Bitfinex.
LEO is paired with assets such as BTC,ETH, EOS, USDT, USDK, USD and other, less liquid coins. The daily trading volume of LEO token is $ 6 million, which is a very modest indicator for a coin that takes 15th place in market capitalization.
3. Huobi Token
Huobi Token (HT) - is an internal tokencryptocurrency exchange Huobi. LEO was created in January 2018 on the basis of the Ethereum network (ERC-20 standard) and was distributed through IEO among VIP users of the exchange. Customers were offered to buy the so-called Point Package Huobi Pro, which contains a certain number of tokens, the purchase of which will allow obtaining privileges for trading on the exchange. As a result, IEO sold 300 million HT, with a total issue of 500 million tokens. The remaining HTs were frozen to fund the platform.
Using HT, you can buy a VIP status, whichIt will be interesting for traders performing a large number of operations. The cost of VIP status varies depending on the number of tokens purchased, and the maximum discount on commission fees can reach up to 50%. Users who already have HT tokens, each time they list a new cryptocurrency or token, receive a small number of tokens as a present, and can also participate in the polls, which are directly related to the development and innovations on the Huobi exchange.
HT token is traded on such exchanges as: DragonEx, HitBTC, Gate.io, BiBox, BitZ, BitMax, BitForex and others.
As a result of voting by the community of HT holderstokens, it was decided that from the fourth quarter of 2019 tokens will be burned in the amount of 15% of the profit, and 5% will be used to buy and burn team tokens to prevent them from entering the secondary market. Burning, as a rule, occurs on the 15th day of the following month after the end of the quarter: April 15, July 15, October 15, January 15.
HT is paired with assets such as BTC, ETH, LTC, EOS, XRP, ETC, DASH, USDT, USD and other coins.
Largest token trading volumescarried out on BiKi - 28%, DragonEx - 24% and BitZ - 8%. Huobi accounts for just over 6% of trading in its own token. The daily trading volume of the token is more than $95 million, which makes HT one of the most liquid exchange tokens, second only to Binance Coin.
4. OKB (OKEx)
Token OKB is an internal tokenOKEx cryptocurrency exchange. It was created on the basis of the Ethereum network (ERC-20 standard) in April 2018, but in the future it is planned to transfer it to its own OKChain blockchain. The issue amounted to 1 billion OKB, 300 million of which were distributed free of charge between the exchange's customers, and the remaining 700 million were frozen until 2022. After defrosting, they will be distributed as follows:
Holders of OKB tokens, like on other exchanges,receive certain privileges, for example, they can vote to list new coins on the exchange, introduce new features or change old ones. Depending on the trading volume and the number of OKBs in possession, token holders receive a discount on trading commissions.
In addition to being used in the exchange ecosystem, OKBtokens can be spent at 24 OKEx partner companies. In addition to the parent exchange, OKB is traded on such platforms as DragonEx, BitMax, Coinall, Bitfinex and others.
Since May 4, 2019, the exchange uses 30% of revenuefrom trading commissions in the spot market to buy OKB tokens from circulation with their further burning. Since June 1, 2019, the buyback is carried out every 3 months, and the burning is reported only after a week to avoid price manipulation on the days of the token buyback.
OKB is traded in pairs with assets such as BTC,ETH, XRP, LTC, TRX, IOTA, NEO, ZEC, DASH, USD, USDT and others. More than 50% of trading volumes of the OKB token come from the OKEx exchange, 20% and 14% come from the BiKi and DragonEx exchanges, respectively. The remaining tokens are evenly distributed among other sites. The daily trading volume of the OKB token is $55 million, which indicates the high liquidity of the token and demand for it from the community.
5. KuCoin shares
KCS Token - is an internal tokenKucoin cryptocurrency exchange. It was created on the basis of the Ethereum network (ERC-20 standard) and was distributed during the ICO in August 2017. KSC issue - 180 million coins. Token Distribution:
The KCS token, unlike analogues, has a unique motivation system for its holders. For example, 90% of commission fees are distributed among token holders. Of them:
The ICO White Paper stated that the exchangeplans to thus reduce the total number of tokens in circulation to 80 million KCS. At the end of 2019, the number of tokens in circulation was 82,363,551 KCS, and another 60 million tokens remained in the company’s account. In addition to the above, holders of KuCoin exchange tokens receive additional privileges:
The KCS token, in addition to the KuCoin exchange, is traded onexchanges BitMax, BiKi and ProBit Exchange. The main trading volume falls on the token’s “native” exchange, KuCoin – about 95%. Just over 4% comes from the BiKi exchange. The token is traded in pairs with such assets as BTC, ETH, XRP, LTC, EOS, NEO, USDT and several other less liquid tokens. The daily trading volume of the KCS token is about $7.5 million.
6. EXMO Coin
EXMO Coin (EXM) - is an internal tokenExmo cryptocurrency exchange. It was created on the basis of the Ethereum network (ERC-20 standard) and was distributed during the IEO, which was conducted from July to October 2019. The total issue is 2 billion EXM, however, the token will not be issued immediately:
Owners of EXM tokens receive discounts on tradingcommissions up to 50%. The size of the discount depends on the purchase amount of the Cashback package. For example, by purchasing a package for $1 in EXM tokens, Taker will receive a 5% discount for the month on trading fees, and Maker will receive a 10% discount. By purchasing a package for $500 in EXM tokens, Taker will receive a 25% discount, Maker 50%. In addition to discounts on trading commissions, EXM token holders receive additional benefits:
Like other crypto exchanges that have issuedown token, EXMO also plans to quarterly burn EXM. Tokens will be burned by which users will pay for the Cashback package. Burning will occur until 50% of the issued tokens remain in circulation.
The EXM token is traded in pairs with BTC, ETH and USDT.In the future, it is planned to add other assets to the token pair. The entire trading volume of EXMO Coin occurs on the EXMO exchange. There is no word yet on listing on other exchanges. The daily trading volume of EXMO Coin is more than $25 million, which is a very decent figure for a “young” token, and given its low cost, we can safely call it one of the most liquid exchange tokens on the market.
7. BitMax Token
BitMax Token (BTMX) - is an internal tokenBitMax cryptocurrency exchange. It was created on the basis of the Ethereum network (ERC-20 standard) and was distributed during the IEO, which took place at the end of 2018. The total emission amounted to 10 billion BTMX.
49% of tokens remained under the control of the company for the development of the platform, of which:
51% of tokens will be paid asremuneration in the so-called "Trading mining". Users of the site will receive BTMX for transactions and transactions. The more trading volume and operations on the exchange the user performs, the higher the reward tokens he receives.
It is possible to spend tokens only on the platformBitMax by receiving VIP membership, which includes an increased discount on trading fees and transactions. There is no information about the burning of tokens or any other actions on the part of the exchange that could keep the token from inflation. The only method of supporting a token is its gradual unfreezing through “Trading mining”.
The BTMX token is traded primarily on BitMax, butis also listed on IDEX and ProBitExchange, however, the trading volumes of the token on these two exchanges are almost zero. BTMX is traded in pairs with such assets as BTC, ETH, USDT. The daily trading volume of the token is just over $2 million, which makes it not the most popular and attractive asset among other exchange tokens.
8. BibBox Token
BiBox Token (BIX) - is an internal tokenBibox cryptocurrency exchange. It was created on the basis of the Ethereum network (ERC-20 standard) and was distributed through an ICO in October 2017. The token issue is 270 million BIX, although it was originally planned to issue 500 million tokens. By paying internal fees with the BIX token, holders can receive a 50% discount, the commission will be 0.05%, while the normal commission is 0.1%. Every year this discount will be halved, and after 5 years, in 2022, the program will cease to operate.
25% of quarterly profit goes to buybackand burning tokens. Burning traditionally occurs in the middle of the next month after the end of the quarter. Thus, the exchange supports the inflation token.
BiBox Token, except the parent exchange, is tradedon exchanges such as Huobi, BiKi and DEx. The main trading volume, about 95%, falls on the BiBox exchange. The token is traded in pairs with assets such as BTC, ETH, USDT and other less liquid coins. The daily trading volume is just over $2 million, which makes it one of the outsiders in this review.
9. FTX Token
FTX Token (FTT) - is an internal tokenFTX cryptocurrency exchange. The token was created on the basis of the Ethereum network (ERC-20 standard) and was distributed during the IEO, which was held in June 2019. The total issue amounted to 350 million FTT, of which:
FTT owners receive a discount on tradingcommission, the size of which depends on the number of coins in the account. For example, the owner of tokens worth $100 receives a 3% discount, and a maximum discount of 60% can be received by the owner of tokens worth over $5 million. In addition to discounts on trading commissions, token holders receive discounts on over-the-counter transactions and futures trading commissions. FTTs are also used in the battle royale that the exchange organizes for all interested traders.
To maintain the token from depreciation, a weekly burning procedure is provided. The exchange directs to buy tokens from the market:
FTT token is traded on exchanges such as Binance,Bitfinex, Huobi, BitMax and Coinex. The main trading volume falls on the BitMax exchange - more than 40%. About 35% of the volume comes from Huobi, about 15% from Binance, a little more than 5% from other exchanges, and less than 5% from parent exchange FTX. The token is traded in pairs with coins such as BTC, USDT, BNB and HT. With a high market capitalization, and also taking into account which exchanges the token is listed on, a daily trading volume of less than $2 million is a very weak indicator, which indicates its low liquidity.
10. GateChain Token
GateChain Token (GT) - is an internalcryptocurrency exchange token Gate.io. Like all exchange tokens, GT was released on the basis of the Ethereum network (ERC-20 standard) and was distributed during the IEO, which was held in April 2019. The initial issue of the token amounted to 300 million GT, but gradually, over the course of 10 years, the exchange will issue another 700 million tokens, bringing the total issue to 1 billion. Unlike all the analogues in the review, the GT token can be mined because it is based on the PoS algorithm and is the fuel for transactions on the Gatechain mainnet network.
This token is issued to support the project.GateChain, which the company promised to present in late 2019 and early 2020. The essence of the project is to solve the problem of the theft of digital assets and electronic keys using decentralized transactions and cross-chain transfers. How the company is going to realize this idea is still unknown, the details decided not to disclose until the release of the project. At the moment, the token can be used as an investment tool, because if the project developers manage to realize the idea presented, it can quickly become popular in the market.
GateChain Token is traded on such platforms asHuobi, BitMax, EXX, BiKi, Coinall, P2PB2B and others. The largest trading volume falls on the BiKi exchange - 44.5%. Another 43% comes from the EXX exchange, the BitMax exchange accounts for 8%, and only 3% comes from the native Gate.io exchange. The token is traded in pairs with coins such as BTC, ETH, HT, USDT and USD. The daily trading volume is more than $6 million, which, with a market capitalization of $16 million and not the greatest popularity, makes it a very liquid exchange token.
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