Community-Focused Exchanges with Proprietary Tokens Are Prospering

[mayurobin]

Community” is a word that is synonymous with cryptocurrency projects, but aside expressing a desire to develop a strong user base, what does it actually mean? For exchanges, having a community-oriented model means consulting customers on new tokens, incentivizing participation, and creating a revenue-sharing system. Binance and Kucoin are two platforms that have tried this model, and it’s been paying dividends.

Unicorns – startups valued at over $1 billion – are almost as rare as the magical beasts they’re named after. Uber, Airbnb, and Xiaomi all fit that definition. But 2017 created another unicorn, one that the average man in the street will not have heard – Binance. A recent article postulates that the cryptocurrency exchange could be “the fastest profitable unicorn in history”. It took just 143 days for Binance to ease its way into the top three and the exchange has since cemented its place there, regularly claiming the top spot for trade volume. In the last 24 hours, $5.5 billion was traded there.

Community-Focused Exchanges with Proprietary Tokens Are ProsperingThe numbers alone don’t tell the true story of Binance’ success however. It, like Kucoin, has been prospering thanks to a business model that is based on listening rather than simply dictating. The traditional model, as used by the likes of Bitfinex, Bittrex, and Poloniex, sees exchanges add new coins and tokens at their discretion, with scant regard for what the community wants. There are reasons why it is prudent not to seek consultation or post prior notice of every new coin listing. However, there are also cases where there are clear benefits to seeking user input.