The Exchange coin trend, Will all exchanges soon have their coin?

[Iykecollins]

I am just curious why a lot of copycats in this cryptoworld, previously exchanges are not known to have their own coins, I remember trading with exchanges like Poloniex, Bittrex, bleutrade, cryptopia, coinexchange, etc and they were not known to have their coins.

It happens that most exchanges this period are now launching exchange coins and ICO, noticed that some exchanges that do not previously had their coins are internally launching theirs, an example is hotbit.  I  know this was due to the success of Binance coin. What baffles me is that most of these exchange coins do not have any other use case aside from being exchange coins and they promise to reward some users with it.

[tsaroz]

Yes it's the new standard for a crypto exchange.
Most of the coins issued by the exchanges are both a way to redistribute the profit of the exchange by dividend, burning or both as well as the fuel for the proposed dex.
The future is of dex and it's a easy bet to say the most successful exchanges at current time would have the best dex in the future. And a dex specific fuel would assure a ever present profit for the exchange and the investors.

[fanji]

why does every exchange always make their own coins? maybe the main factor is, the exchange is already crowded and the exchange developer wants to take the opportunity to make a profit, you know yourself, the exchange income only comes from fees, advertisements, etc., but vice versa with the existence of their own coin making if the exchange is quiet or there is no activity, it will be useless because there will be no change even though it has its own coin

[rodalutor]

It's the standard way of having easy to use coins to enable discounts etc while also covering fees. It's a better deal for all involved as it gives exchange fees in a readily accepted currency instead of requiring converting from whatever currency was traded in.

[auliahr]

I think their own coins have important uses to add funds or finance all of their operations, so their exchanges continue to grow.

[lightcar]

Exchanges making their own coin is out of pure greed, it doesn't even serve a practical purpose.  There are a lot of greedy people in crypto and it's hurting us immensely.

[taguig]

Nothing beats success, exchanges based coins are the in thing in the ICO I have seen at least 4 exchanged based ICO and they are gaining a lot of support and some of them even reached their softcap, ao we will see more exchanged based ICO in the next days.

[BaeNaNa]

It is a common things to do when you open a new exchange nowdays, they have their own utility token that can be used to get some advantages in their exchange like cheaper fee or dividend from the trading volume etc, that's mainly to attract people to use their exchange. I don't mind that as it's better rather than other project who release no product.

[Diablesfunis]

Exchange is a great business in crypto so of course everyone want to open one and they use the coin to raise the capital needed for the development, operational and marketing purposes. It's a good business plan and the people that buy the coin are also happy if the volume in the exchange is getting bigger and bigger. You can also see exchange that have their own coin is more popular right now.

[bolshojkush]

I am just curious why a lot of copycats in this cryptoworld, previously exchanges are not known to have their own coins, I remember trading with exchanges like Poloniex, Bittrex, bleutrade, cryptopia, coinexchange, etc and they were not known to have their coins.

It happens that most exchanges this period are now launching exchange coins and ICO, noticed that some exchanges that do not previously had their coins are internally launching theirs, an example is hotbit.  I  know this was due to the success of Binance coin. What baffles me is that most of these exchange coins do not have any other use case aside from being exchange coins and they promise to reward some users with it.

You need to consider coin exchanges as a kind of stock and a way to attract new users. Now it is a trend.

[Noobaru]

I know about Binance having its coin and KuCoin also. It is used to reduce fees when trading (maker/taker fees). But I don't know if it has any other features beyond that. It is a common practice this days...

[mklost]

I don't think All exchange will have their coin. Some popular exchanges like the Binance, Bancor, Bibox, Kucoin Tradeio, all of them had an ICO, token sale. So, they have their own coin and exchange, it is normal. They promised to the ICO Investors and they keep! But I don't think Bittrex, Poloniex will come with their own coins! Hotbit is being a very popular crypto exchange, so they bring their own coin. Though it wasn't any ICO.

[Teraboy]

Yes it's the new standard for a crypto exchange.
Most of the coins issued by the exchanges are both a way to redistribute the profit of the exchange by dividend, burning or both as well as the fuel for the proposed dex.
The future is of dex and it's a easy bet to say the most successful exchanges at current time would have the best dex in the future. And a dex specific fuel would assure a ever present profit for the exchange and the investors.

It's not a new starndard but they are try to take the advantage in their own way. basically if there was a lot of demand will try to buy their coin and then could make the price of coin will be spiking a lot.
That makes sense to see these exchange sites interested to create their own coin consider about the fact that it can give a lot of advantages for them.

[sarul]

It is a common things to do when you open a new exchange nowdays, they have their own utility token that can be used to get some advantages in their exchange like cheaper fee or dividend from the trading volume etc, that's mainly to attract people to use their exchange. I don't mind that as it's better rather than other project who release no product.

Right, It's also used for gain fiture such as premium access or user, for voting a new coin and many more. because basically the coin is their product, so they run faster than other projects. Although it was a good thing, but there are also some exchange that don't make their own coins, like a local exchanges.

[pitiflin]

I am just curious why a lot of copycats in this cryptoworld, previously exchanges are not known to have their own coins, I remember trading with exchanges like Poloniex, Bittrex, bleutrade, cryptopia, coinexchange, etc and they were not known to have their coins.

It happens that most exchanges this period are now launching exchange coins and ICO, noticed that some exchanges that do not previously had their coins are internally launching theirs, an example is hotbit.  I  know this was due to the success of Binance coin. What baffles me is that most of these exchange coins do not have any other use case aside from being exchange coins and they promise to reward some users with it.

There are lot of copycats because cryptoworld is unregulated on most part. I can't tell if all crypto exchnages would have their own coin/ICO, but they are likely to enforce KYC on its users. It makes sense why some exchanges need to raise funds, but if all exchanges could do it, then we will only see useless sites in the name of exchanges popping up and asking for investor's money and run away.

[muncuss]

Now many exchanges create their own coin because binance successful with its BNB coin. and they can get more money because their coin by creating pair or by voting system

[sixexgames]

It's sort of like a rewards program for the exchange. If an exchange can make you feel like you own a part of it, you're more likely to do your trading there. I like investing in exchange coins because it's passive income and I do feel like I'm investing in a business.

[automail]

I think majority of the new exchanges that was online already has their own coin. Although it is not needed, they prefer having their own coin so that they would have their own capital to run the exchange. The money raised was also used to improve the services on the exchange. A coin holder might have some advantage compared to regular traders. Premium access means money for them and preventing the exchange to go bankrupt.Just an FYI : KYC is also needed for those exchanges.

[Cedrick]

For me it doesn't make any sense for them to create their own coin as their exchange will only be used for trading. There are no other services to be offered and if there other service, that is just a bogus or an upsell. They already earn on all of the transactions done and they still want to earn using their own coin. I don't get why they need to do that. Does anyone know why exactly they have their own coin?

[anobtc]

If they want to make their coin, that coin must have real application. For example, Binance and some other bourses allow lower transaction fees through BNB, which is a good idea to encourage usage. Or some other exchanges having their staking coin.