Bitcoin Forum

I've only really started learning about crypto and I don't really see the point to all these million different exchange tokens.
Most of them just seem to speculative tokens with no actual function as far as I can see  ::)
What do you think?

You must try to understand the usecase of token that owned by exchange site. The exchange site tries to give the utility usage to its users, That means if the exchange site was creating the token for their own purpose.
I do believe if you are feeling strange caused by any exchange site has released its own token, right? The token like BNB can be used for various things.

If anyone can create their own tokens then why it should not be done by the exchange, And no one is forcing you to buy such coins as well. They are giving extra discounts if you hold such coins while trading which gives benefits to the trader as well as for the exchange but if you are simply holding a token then its simply stay there without much benefit from it.

There were a lot of ICOs that were based on exchange because of the success of Binance token, but these projects cannot duplicate the success of Binance they failed miserably in the market, there are still projects based on exchange and they used it as fee or share of the company's shares, unfortunately only Binance and Kucoin coin proved their worth in the market. many of these are weak and speculative coin it's hard to duplicate their success.

Different exchanges are creating their own token for specific reasons.

I don't usually research the use of the exchanges' tokens but I will just say Binance which is the most popular. Their token have many uses mainly: for staking purposes, to have a lower fees when using their exchange and most importantly to support the exchange and to have some profits too.

The exchange site was taking advantage of its platform and when they can create their own coin and why do they need to use another exchange coin? that doesn't make sense if there was an exchange site that was using the coin created by another exchange site. The token itself being used to give the discount for the fees participated in the IEO, Staking and many more.
I can't deny if exchange site is also looking for an opportunity to get capitalization.

Most of the exchanges that has own token is for discounted in trading and also for staking and I think they just want to make extra income not just only relying in trading fee and withdrawal fee to survive the exchange. I'm sure making their own tokens is profitable because the owner has a big supply and once the price gets pump then surely he will sell it at any amount he want.

Every exchange has its own token because they generally use it to charge transaction fees. Now the value of any exchange token depends a lot on the volume and business generated on that exchange. For example BNB currently the USD value of it is above $40 because the higher use of it on Binance exchange. I do not think an exchange token will not have an actual use case untill that exchange is new and does not have any volumes.

Because its easy way for them to earn even more money. And traders like them because its a way to save on fees

Not all of them are, because exchanges are popular or well-known, of course the tokens will also have value and be useful for traders there, even though each exchange and token compete with each other to be the best among millions of tokens.

That's also become the best way for the exchange site to give the reward for its community too.
The exchange sites were giving so many abilities to its token. The users are also getting more advantages by holding the tokens that are issued by the exchange site.
It's not only the exchange site care about the money but the exchange site is also care with the community that supports the team to develop a proper platform.

It's just business decision whether it has actual function or not it really depends on their business model, BNB gives privilege of discount in fee but other exchange token might not offer such thing like at all.
But I think the only obvious reason is because it could give them additional profit out of nowhere and brand awareness. Also it could be a platform for IEO aswell for many cases. There's nothing complicated behind it.

Mostly though, exchanges issue their own token for traders. Meaning that you can take advantage for example, BNB for trading fee in their platform plus other incentives like staking or even rebate.

So it's a win win situation for us traders and the platform itself. It's just a matter on how we are going to take advantage of the self issued token by many top exchanges out there.

Exchanges will give many reasons to use their own coins, for the purpose of reducing fees, ensuring safety, .... And the coin exchange trend is still very hot, almost all exchanges translate using own coin. Typically, the success of BNB, OKex, Houbi, these are the exchanges that have their own coins operating strongly and bring great profits to those who have bought it.

Yes, they can grow their economy with their tokens. I think it is quite necessary, because it is included in the features of an exchange. with native tokens from the exchange, they can also provide some benefits that can be obtained such as reduced fees and others, that is part of the economy that is run. when the economy works, the ecosystem will grow and the business will grow faster

It is magical to create money out of thin air  :D. Most of the exchanges have their own coins and they claim that holding them will help in reducing the trading fees and those are created just to manipulate the market and create more profit and nothing else, look at BNB, they gave out a lot of coins and now every month they will be burning the coins and during that time the price rallies. 

The token will become the best thing that can be used by the exchange site to give the discount or something else for its users.
The token can also be used as various things. The users are also getting a lot of usefulness from the token that issued by exchange site. They can participate in the various event that created by the exchange site.

Various cryptocurrency exchanges create their own cryptocurrencies for various purposes, for example, most cryptocurrency exchanges do this in order to earn money on this, other cryptocurrency exchanges do this so that with the help of their tokens people could participate in IEOs that are held on these exchanges or, for example, with the help of exchange tokens, you will dont need to pay various commissions or these commissions will  be much cheaper if you have exchange tokens on the exchange on which you trade and this is only a small list of the possibilities of exchange tokens, so in general the advantages of many exchange tokens are very huge.

actually, not all have. but most exchanges make their own tokens or coins to make trading ties. such as interesting events for traders or investments to continue to grow and not go out of the market. keep their community to be more precise. especially with their own tokens or coins, there will be less capital issued compared to using tokens or coins from other platforms. especially when considering the benefits that can be obtained, surely all exchanges think about it.

Honestly it is a way to fund more money, they just get money from it and why wouldn't they want more money? I do think that BNB is great and that is the reason they created it, they used it to fund themselves on early days and they sold bunch of it and created binance with that money, so it was needed and I get that, however afterwards they got super rich and burned so many bnb and used bnb and its chain to help so many, they even gave out funds to other projects as well.

So, I think there is a good way and there is a bad way of doing this, and if you are doing it in the bad way that means you are useless and just doing it so that you could make a profit, if you are doing it the good way you are just collecting funds to make better stuff for everyone and you should do it. That shows in the rankings of the created coins as well too.

Maybe to build another trusted position in the cryptocurrency. Why would we trust any new exchange and deposit in it? Those exchanges must have some legitimate things. Centralized or decentralized exchange, both should have exchange coins to list another exchange or Coinmarketcap. Own token exchange is more trusted.

If you gonna feel comfortable with trading the token of an exchange, then it is meaningless to ask why this coin exists or not. The Binance exchange has made the perfect coin match on CMC and the most volume of exchange altcoins is based on the trading of BNB. BNB can give a huge advantage for regular exchange users with low fees and higher trading volume but the same idea is not true for the rest of the alternative crypto exchanges.

Mostly they are utility tokens with reduction in trading fee if you hold them but i agree there is no need for an exchange token but it became a big trend due to the success of binance and its bnb coin and now every exchange thinks it is important to have their own token mostly because of the financial gains and control over users it gives.

unreasonable reasons, it is not because it wants to make easy money, but indeed an exchange wants to have its own coins or tokens in order to compete with other exchange projects, and of course there are many use cases in it, a good exchange launching coins would be great, because it's one of the things to gain the trust of the users, such as Binance which has BNB, Kucoin which has KCS, and Huobi which has HuobiToken.

i think an exchange tokens could be a good product and usually by holding any exchange tokens we can use it to reduce the trading fees on any exchange my friend, so its not just a speculative tokens only

i think this is not a speculative, because its a kind of marketing strategy from the exchange my friend
and remember not all exchange has its own token, for example bittrex

I think that the main purpose of creating your own coin is a coin for service or voting, and reducing the cost of commission, for example, on Binance

and this is a marketing strategy, very effective in attracting traders with lots of discounts for all activities in the exchange ecosystem concerned.

Regarding the number of coins and tokens in the cryptocurrency ecosystem today, in my opinion, it is a real form that many developers are developing the potential of cryptocurrency. There are many aspects that are trying to improve with the use of cryptocurrency, take a look at the following ETH ecosystem

https://cryptodiffer.com/news/wp-content/uploads/2019/12/Ethereum-DeFi-ecosystem.png
_{source: https://cryptodiffer.com/news/ethereum-defi-ecosystem/}

it can make it easier for us to understand that the tokens are made for a special purpose and are really useful.

This diversity of coins and tokens will create healthy competition for this ecosystem, what we need to do is to really take advantage of the existing potential.

Aside from having their own identity, the bottomline is of course the profit that they can generate from their own token. Although, some are saying that using their token will reduce fees and such, it is also part of marketing their own token. Creating is free but if traders will use it, and patronize it, it will have value in the market. So bottomline, added source of income also for the exchange platform itself. They are enticing traders to use their own token for discounts and others and at the same time, they are also generating income from this asset.

As far as I understand the exchange coin, it will bring real benefits when you use it for the exchange itself. You can save on transaction fees, money transfer fees, and many of the event programs around these exchanges. The current trend I see is that there are many exchanges with their own coins that bring a lot of value and help you make more income from the exchange coins, follow the coins on the houbi, okex,... those coins exchange coin that I am farming to earn more income.

Most exchanges never created their coins. But the largest exchanges are interested in promoting their coins. For sites with a reputation, this is an important competitive factor and an opportunity to attract new investors.
Wallets and exchanges are the most demanded tools in the crypto space and the most profitable.

A lot of exchanges exist because of issuing token to crowdfund founds for start. Binance, Kucoin, Bithumb, ...  There are plenty more. None older exchange have any token. Three is not Bitctamp token, no Poloniex token, no Kraken token.

Mostly exchanges they created own native token that’s definitely more benefits for the exchange users as like BNB is the most potential coin in this time, it’s provided a lot of use cases if you have to participate in Binance launchpad project then you need this coin and for staking BNB they will return annual ROI. BNB holder getting a lot of profit in many ways. It’s the best utilizing token ever i have seen.   

If at least one cryptocurrency exchange provided its own token to clients with the ability to receive dividends from the profits of the exchange itself, then such a token would immediately become in demand and its price would become very high. Of course, it is a very good solution to reduce commissions at the expense of a token on the exchange, but to a greater extent it is beneficial for those traders who trade large volumes of cryptocurrency.

It's why you need to be careful with new projects, don't be manipulated by old whales which can make you think you can become a whale if you buy those cheap new altcoins, majority of them are nonsense projects that's not needed

Exchanges can run without their own token but these days exchanges develop their own token to create value. For sure, when the price of the exchange token increase, the real benefices are the owners of the exchange. Everyone wants to make money so exchanges also don't wanna miss out on getting profits by creating their own token.

an exchange could survive without a token, but this is a good advantage for both admin and end user of these platforms.
there are a lot of advantages for exchanges that are using their own token... not only for a "marketing" concept but also from an economic point of view since
most of times, exchanges can use their token as a way to give a part of their profit to the base user.
tokens could be used also on exchange for save fees or paying extra service like request a listing. most of times these tokens are sold like an ICO so there is a big amount of cash that could be easily collected by an exchange.

It's an advantage worth taking  ;D, people like the idea of thinking that exchange tokens can easily being huge profits since the token have a real use case which is the exchange itself, they compare with bnb token, Wazirx, OKB etc, truth is not all exchanges that have its own token will do well like binance token

This had been a typical thing for an exchange to have their own coins and its price would really be varying correlated into their popularity.Just like on what we are seeing
with Binance currently where BNB does really have some high price which its no surprise considering on the current ranking or position of Binance in the market.
On making one then we dont know the actual reason but to use up your own common sense then this will be an another side income for sure where exchange tokens
would really be significant and it turns out to be effective if you do try to look at the current condition.

As a business you need to think of what is good for the future of your project just like for an exchange they need to have its own utility token for its services like trading fees in Binance to be able to sustain the development and future company expenses you dont want to rely in only one source of income in this space look at those old exchanges like Polo and Bittrex they cant compete anymore in giant Binance because maybe they dont have enough funds to market their exchange into many new traders.   

I may think that's another way exchange adding some funds for their company. It's all about business. In the other side, we can't say it has no function. It has the same function in all exchanges, to be utility token where you can get benefit for holding them while using the exchanges services.

They all compete with each other which each token also has a different function within the exchange and it's making money as well. One exchange is providing dividends to its token holders which is why it becomes very attractive to its users like the KCS while BNB is only for trade fees. Anybody who can come up with a good idea of token's use case will probably excel as well if they create an exchange.

It's not true at all consider when you are comparing all of them and these exchange tokens have almost the same feature between one to each other but there are some may offer the more benefits compared with the coin that used to get the discount fees.
BNB was offering multiple benefits compared with its competitors and that's why it's very valuable compared with another exchange token.
I think that the creation of exchange tokens to give its users the best experience with the exchange site that already fully developed.

your a starter thats why you have alot of questions in your head but as soon as you are not a newbie anymore you will think that your negative thoughts before are wrong . we have almost millions of coins but i dont think we have an exchange for each coins and also not all the exchange do issued thier own coin .

 coins that are owned by exchange are i think more functional than a random coin pop out of no where , those are the coins that are the real speculative .

As cryptocurrency is gaining popularity one of the profitable businesses is to create a crypto exchange, and the way to get funds for its development is by creating tokens and making token sales.
It is true that many exchange tokens end up being useless and end up being only used for fundraising without clear development and usually this will have the same fate as the exchange.

You must consider that as a favorable for you as an exchange user because that will be
a utility coin/token of that said exchange and we as users will benefits from that , Look  at Binance (BNB) with now has the most popular or one of the most exchange in the world of crypto trading.

https://www.binance.com/en

and Here is their Token in which you can see for yourself.  https://coinmarketcap.com/currencies/binance-coin/

As long as it has a good use-case, I don't see any problem with that. Better than random low market cap coins out there that can easily be manipulated.

It plays a big role starting from trading fees and any other features. Just take a look at how can you take advantage of using BNB as an example on their platform. Not just by trading it but to take part in several features if you owned it. Way more legit compares participating in sh*t ICO's popping out of nowhere.

What exchanges do you want to pinpoint here?

Of course, what you said is right, but we should be careful with some of the exchanges out there, most of the exchanges using their token as a utility token and it will help the customers to trader there, they will collect the fee in the form of their utility token. Exchanges will create their own token because this will help them to get more awareness about the project.

It not about awareness but rather it does have several reasons like on making more money and of course with that exposure you've been talking on.

There are exchangers who doesnt have  their own dedicated token though but since we do talk into those who does have then they are going into different path

but doesnt mean that these coins are bad for you to consider on making it an investment because you wouldnt know if that exchange would succeed or not.