In this article, we will tell you what exchange tokens are, how you can get certain privileges when investing in them. Is it possible to reduce exchange commissions with their help, and also why they are beneficial to regular users of the exchange who are engaged in trading or exchanging cryptocurrencies.
The cryptocurrency market has about 10,500 different tokens and digital assets. They were created for a variety of purposes and tasks. We can give several examples:
- A token that digitally represents traditional crypto assets.
- A cryptocurrency that is needed for the safety of valuables or is used as a payment instrument.
- Tokens used for the ecosystem of a particular project.
Such tokens and cryptocurrencies are used for payment or investment. It is worth knowing that there is another equally popular segment of tokens that has a narrower specialization – exchange tokens.
Binance Coin (BNB) is an internal token of the Binance crypto exchange. It was created according to the ERC-20 standard, based on Ethereum. It was distributed during the ICO. 200 million BNB was the total turnover of the issued token. During the tokensale, half of the BNB was sold, the remaining half was distributed as follows: 80% were registered to maintain the exchange, and the 20% that remained were used as a bonus for the first investors.
Not only on the exchange of the same name, but also on others.
With the help of the BNB token, the user can pay trading commissions, make internal transactions, can also pay for a service or make a purchase on the partners’ platforms. Until 2021, it was possible to get discounts on trading commissions.
A deflationary model can be considered as a feature of a token that is formed by several factors:
- Each quarter, the token is burned to prevent its depreciation. The purpose of the exchange is to leave no more than 100 million BNB in circulation. The tokens are burned between the 12th and 17th of the month following the quarter.
- Extensive use of token, which is not limited to the exchange. There are more than 30 projects where it can be used. These include travel, entertainment, financial services and the opportunity to purchase property.
- An impressive number of exchange residents who use the token. In addition to the usual increase in new persons in Binance, the exchange is buying other sites in promising regions, as well as opening new offices.
Almost half of the BNB trades are traded on the P2PB2B platform, on Binance itself a little more than 15%.
UNUS SED LEO
UNUS SED LEO (LEO) is an internal token of the Bitfinex crypto exchange. It was created according to the ERC-20 standard, based on Ethereum. It was sold out during the IEO in 2019. 1 billion LEO was issued to the total turnover, the sale was carried out at the rate of 1 LEO = 1 USDT. The main goal of the LEO token was to create comfortable conditions for its users during trading. The exchange provided the following opportunities for token holders:
- Trading commissions were reduced by 15% for LEO holders.
- Exchange clients have the possibility to receive a discount in the site’s credit service.
- They also receive discounts on the input and output of fiat.
The Huobi Token (HT) is an internal token of the Huobi crypto exchange. It was created in 2018 in the Ethereum network, spread due to the IEO, between the VIP residents of the site. Users purchased the Point Package Huobi Pro, this package contained a small number of tokens, thanks to which it was possible to get some privileges when trading on the stock exchange. Half a billion HT was released into circulation, about 300 million tokens were sold out of them, and the rest were frozen to maintain the site’s activities.
With the help of the token, it is possible to purchase a VIP status. This status, first of all, may arouse the interest of traders who perform many operations on the crypto market. The price for obtaining such a status depends on how many tokens will be purchased. At the same time, the discount on the commission fee can reach up to 50%. Residents who already have a Huobi Token, during each new listing of cryptocurrencies or tokens, receive, as a gift, a little digital asset. Also, holders of the HT token can be participants in voting held for the purpose of developing or introducing innovations within the Huobi platform.
The OKB token is a token of the OKEx crypto exchange. It was also created according to the ERC-20 standard. The turnover of the issued tokens was 1 billion OKB. 300 million were divided among the residents of the exchange for free, and 700 million were frozen until next year. What will happen to them after defrosting:
- 100 million will be given to the initial investors.
- 100 million will be transferred to the OK Blockchain fund.
- 200 million remain to maintain the site and other needs.
- 300 million will be used as a reward for residents who use OKEx services.
OKB token holders, as in the previous cases, have a number of privileges. They can participate in voting, during the introduction of new functionality or changes to the old one, as well as when new coins are being listed. Token holders can get discounts on trading operations. What kind of discount will be depends on the amount of OKB. There is also an opportunity to spend tokens from 24 OKEx partner companies.
KuCoin Shares (KCS) is an internal token of the Kuchin crypto exchange. It was created according to the ERC-20 standard, based on Ethereum. It was distributed during the ICO in 2017. The turnover of issued KCS coins was 180 million. The tokens were distributed as follows:
- 100 million went to tokensale.
- 60 million remained inside the exchange, for the development and financing of the site.
- 20 million were bought by investors who received a private offer.
KuCoin Shares has a distinctive feature, compared to its competitors. He has a unique system of motivations for holders. As an example, 90% of the commission fees are distributed among all token holders.
- 50% is divided between residents. The reward increases in proportion to the number of KCS tokens.
- 40% is divided between those users who invite new people to the exchange.
- 10% is spent on buying tokens from the market.
KuCoin Shares can be traded not only on the KuCoin exchange, but also on BitMax, BiKi, ProBit Exchange.
EXMO Coin (EXM) is an internal token of the Exmo crypto exchange. It was created according to the ERC-20 standard, based on Ethereum. It was distributed during the IEO in 2019. The total turnover of coins is 2 billion EXM. Of these:
- 50% was frozen for 3 years, since the first tokens were distributed.
- 20% went as payment to the team and to finance the site.
- 30% are implemented during the IEO and presale.
The presale was carried out in several stages. Thanks to this, everyone who wanted it was able to purchase the token.
EXMO Coin holders have privileges, such as discounts on trading commissions. What kind of discount will be directly depends on the amount for which the Cashback package was purchased.
Like other cryptocurrency exchanges that have issued their own tokens, EXMO also planned to burn EXM every quarter. Those tokens with which residents paid for the Cashback package are subject to burning.
BitMax Token (BTMX) is an internal token of the BitMax crypto exchange. It was created according to the ERC-20 standard, based on Ethereum. It was distributed during the IEO in 2018. The total turnover of coins amounted to 10 billion BTMX. Of these, 49% of the tokens were decided to be left under the control of the company to further improve the functionality of the site.
- 18% for the platform’s fund.
- 12% – to the team.
- 9% – private sales
- 5% – for early investors.
- 4% – to strategic colleagues.
- 1% – went into marketing.
It was decided that the remaining 51% will be paid as an incentive during “Trading mining”. Residents of the exchange received BTMX at the time when they made trading operations or transfers. The reward in the form of BTMX tokens depended directly on the trading volume. The larger it is , the more tokens you can get as a gift. You can spend BTMX on the BitMax exchange. Also, to get big discounts, for the time of trading operations or transfers, you can purchase a VIP membership.
There is no data on whether the exchange is going to burn tokens or whether there will be any other actions on the part of the BitMax platform that could keep the token from inflation.
BiBox Token (BIX) is an internal token of the Bibox crypto exchange. It was created according to the ERC-20 standard, based on Ethereum. It was distributed during the ICO in 2017. The turnover of the issued BIX coins was 270 million, but it was originally planned to issue 500 million.
By paying internal fees using the BIX token, holders have the opportunity to receive a 50% discount, while the commission amount will be 0.05%, which is much less than the usual commission, which is 0.1%. Every year, the discount is halved, and next year the program will cease to function at all.
25% of the quarterly revenue is sold for the purchase of tokens, with their further burning. This is done to keep the token from inflation.
BibBox Token can be traded, in addition to the Bibox crypto exchange, on other exchanges, such as: Huobi, BiKi and DEx. But most of the trading volumes, which is about 95%, occur on the Bibox exchange.
FTX Token (FTT) is an internal token of the FTX crypto exchange. It was created according to the ERC-20 standard, based on Ethereum. It was distributed during the IEO in 2019. The total turnover of the issued coins amounted to 350 million FTT. Of these:
- 5% – went to the insurance fund for storage.
- 5% – are in the security fund.
- 20% – to the liquidity fund.
- 20% – was allocated to the team.
- 5% – allocated to the advisors.
- 25% – were blocked for three years.
- 10% – for the eco-fund.
- 10% – in the acquisition fund.
FTX Token holders have the opportunity to receive discounts on trading commissions. The amount of the discount directly depends on how many coins the holder has in the account. For example: if the amount of tokens the holder has is $100, then he will have a 3% discount. But to get the biggest discount of 60%, the asset holder must have a total amount of more than $5 million.
The GateChain Token (GT) is an internal token of the crypto exchange Gate.io. Just like the rest of the exchange tokens, GT was created according to the ERC-20 standard, based on Ethereum. It was distributed during the IEO, which was in 2019. The initial turnover of the issued tokens amounted to 300 million GT. But, in the next decade, the crypto exchange is systematically going to issue another 700 million, so that the total issue is 1 billion GT. The main distinguishing feature of GT, from all the other tokens that we talked about today in the article, is that GT can be mined. This is due to the fact that the token is issued on the PoS algorithm.
Initially, the GateChain Token was issued in order to support the GateChain project. The project has a specific goal – to solve the problems of theft of cryptocurrencies and digital keys.