Exchanges Tokens

[Coin BTC]

I have seen many exchanges have launched their own token like Binance with BNB, Idex with IDEX, Hotbit with HTB, Yobit with YO etc. where exchanges use their own tokens as another way to pay fees to support token. In addition to it, different strategies are used to create a hype like decrease in supply etc.
But if an exchange goes through a hard period of time and shuts downs then ultimately that token will come to its end because there is no community other than that exchange supporting the token simply because it has no usage outside the exchange.
According to me exchanges should promote the usage of their coins/tokens outside the exchange to build a community in support of it. If your community consists of huge individual entities who believe you then a great community can be formed. Otherwise lack of applications would lead these things to disaster.

Indeed, there are now many exchanges launching their own coins. But some of them are only in individual exchanges, they don't release other exchanges. For example Hotbit with HTB. There is no double exchange. In contrast to Binance which has expanded. If Hotbit is not able to survive, of course, their coins are meaningless. But if the parent exchange is no longer active, even though their coins are listed in many exchanges, the coin will sink. That is, there will be no users. But I am sure, if the exchange goes well, even though the coins are only registered in an individual exchange, then this coin will have a high value. This will even make it easier for CEOs to control the price of coins.

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[irixo10]

What will actually make an exchange token worthless? I think the answer is, if the exchange stops functioning as it should and start decreasing in users due to lack of appreciable trading experience. Take a look at Binance exchange, with the way the team are developing their services, I don't think the token will reduce drastically in value but will keep maintaining a good growth. So it means that, every token have a place it is applicable and this starts from the on set of the project's life. So my opinion is, let exchanges works on improving their services which will bring more value to their token; this is also applicable to all projects in the crypto space.

[Saisher]

You have a point but it does not apply to exchange only it also goes to all projects if the developers run away everything on that project dies down, if you are going to invest in an exchanged based token make sure, they are on top of their game, because the exchange industry is a very competitive market.

[kkofor]

What will actually make an exchange token worthless? I think the answer is, if the exchange stops functioning as it should and start decreasing in users due to lack of appreciable trading experience. Take a look at Binance exchange, with the way the team are developing their services, I don't think the token will reduce drastically in value but will keep maintaining a good growth. So it means that, every token have a place it is applicable and this starts from the on set of the project's life. So my opinion is, let exchanges works on improving their services which will bring more value to their token; this is also applicable to all projects in the crypto space.

Indeed, any project would like to be listed at Binance, but in order to do this, the project itself must prove its potential value and this is not easy. I think if the coin is only listed at bad exchanges, then that project is unlikely to exist because people often invest only when they can definitely make a profit. In addition, if there is no strategy to attract new investors, those projects will often soon be forgotten.

[vermigerous]

I think that's why an exchange should keep it's good performance to maintain a good reputation and keep their own utility token to be recognize as well. Because if it fails, i think they would lose their investors and some other people might not use their exchange to buy or sell a token.

[Lagduf]

Yep they should have a plan that their token can be useful outside the exchange if they really want to gain more community, not just only for payment and discounted fees of the exchange. More partnering big companies would be great support their token.

I don't think so. The main purpose for the exchange site's token to be used as a utility token on its own platform. that means it doesn't need to have utility usage outside from the platform consider it's not the purpose of token creation.

[Balladtony77]

I don't think that the tokens from some of the exchanges you mentioned will die. An example is BNB, besides being used on the binance market as a trading pair, BNB is also traded in many markets. Don't you think they now have a strong community in the market ?

I am something bad happens to binance the BNB token will go down, the token is only useful on binance exchange platform, only BUSD can survive without the exchange running since it's a stable coin, hope you understand this point

[IvugeoEvolutionCoin]

I think that's why an exchange should keep it's good performance to maintain a good reputation and keep their own utility token to be recognize as well. Because if it fails, i think they would lose their investors and some other people might not use their exchange to buy or sell a token.

I remember when people FOMO for exchange tokens, believing it must do say x10. Now it's glaring that it's not about exchange tokens, the most important thing is whether the exchange keeps up with development, hence ensuring high Liquidity plus bringing more advanced services to traders. Without this, an exchange token keeps dipping with time. Another aspect is whether the exchange token can be used outside the exchange, some like BNB and KCS have been doing ok in this regard.

[flagpara]

Without Binance coins, I don't use any other exchange coins. I think Kucoin, Okex, Huobi coin and IDEX exchange token are trusted. Without volume, this exchange coin isn't valuable. I don't know if others coin use cases but Binance coin transaction is very fast and very low cost. So this exchange coin now has another use case without exchange.

[inoes]

that is why an exchange promotes and cooperates with several other exchanges. are BNB, YO, HTB, IDEX and others not promoted? besides that certainly one of its flagship features is getting a bonus / cheaper if you use these coins on an exchange. You can observe that BNB exists and is traded on several other exchanges besides the original exchange, as well as YO, Idex and other coins ... I'm sure all coins keep competing to be more popular.

[josgandosbro]

no need to develop outside the platform, just use their own platform and provide some features so that their tokens are more widely used there, not only for fees

[forexandcryptoauditor]

As we see there is no "utility" of exchange token outside its own exchange, they even don't list on other exchanges. As you say, if the exchange gets shut down, there is no value to that token, because its meant for that exchange for fees purposes only.
We should see exchanges as a project in which token is only used within its own ecosystem and not useful outside it.
The hybrid utility we see in BNB token. This is not possible for small exchanges.

[shakesbear]

Without Binance coins, I don't use any other exchange coins. I think Kucoin, Okex, Huobi coin and IDEX exchange token are trusted. Without volume, this exchange coin isn't valuable. I don't know if others coin use cases but Binance coin transaction is very fast and very low cost. So this exchange coin now has another use case without exchange.

Binance has recently been making many different uses for its token, a good example for other exchanges.

[coinfinger]

According to me exchanges should promote the usage of their coins/tokens outside the exchange to build a community in support of it. If your community consists of huge individual entities who believe you then a great community can be formed. Otherwise lack of applications would lead these things to disaster.

But in my view, at least these exchange tokens are having one real-world application unlike most other crypto coins and tokens because most of the crypto coins and token are just being created only for speculative reasons but exchange tokens are created for providing discounts on exchange fees. I'm not against making use of this exchange tokens even outside of the exchange but I don't think that will be having good scope.

Because, we are already having lots of coins for each and every functionality and reasons hence again coming for same purposes but just for the reason of being exchange based token will not be find enough adoption among this crypto community. So, like you have mentioned, there will be an extra layer of risk involved with these exchange tokens as exchanges hacking are happening more frequently and more commonly.

[JHORN]

The exchange like Binance already has done that. They have created a blockchain BEP2. They also have a dex version for trading. That means if Binance goes down somehow then BNB will still have its value to the market. Because it has other purposes. But exchange like gate uses their token for trading fees and voting purposes. That should be a concern for GT token holder because if anything happens to that exchange what will happen to their token?

What other purposes BNB has? You'd better pray nothing happens to binance exchange, the only coin from binance that will be safe is BUSD not BNB, many holders will even panic sell which will crumble every thing within weeks, BNB token isn't useful outside binance exchange

[elyas772]

Exchange tokens raised a trend, but to be honest, I do not believe that any exchange token will get to Binance level. Those guys are lot of steps ahead of other exchange tokens.

[witbla]

What I would say that there is huge variety of different solutions coming onto the market, so I am here with the strategy I personally use. I would say, mine is pretty rational and can help to find the most advanced solutions

[hwteeer]

What I would say that there is huge variety of different solutions coming onto the market, so I am here with the strategy I personally use. I would say, mine is pretty rational and can help to find the most advanced solutions

No doubt that there are many aspects that matter. And I am not only talking about the idea as the idea, but much more about complex approach. So curious to hear your views

[witbla]

No doubt that there are many aspects that matter. And I am not only talking about the idea as the idea, but much more about complex approach. So curious to hear your views

Basically, mine is the pretty complex - I am starting with the niche. For example, talking about me, I am fond of different progressive solutions. After the niche is chosen, I have a look at the solutions that are having the highest ratings along with real feedback from users. And then I am also evaluating things on my own, paying attention to team, opportunities and more

[hwteeer]

Basically, mine is the pretty complex - I am starting with the niche. For example, talking about me, I am fond of different progressive solutions. After the niche is chosen, I have a look at the solutions that are having the highest ratings along with real feedback from users. And then I am also evaluating things on my own, paying attention to team, opportunities and more

Interesting and rational, cause usually people just follow what everyone follows. But I love your strategy more, it is deeper and more objective. And are there many solutions you can outline that follow your requirements? Curious to hear