Why Does Every Exchange Need To Have Its Own Token?

[KimmyF]

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.

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[seleme]

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.

[bttmember]

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?

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.

[kapalmabur]

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

Basically there is no easy way to make money, because all methods obviously cost even a little, so the merchants will follow the methods they can outsmart so that the costs are always low in all respects.

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.

[coinporch]

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?

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

[Kang TB]

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?

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

[valek.bruno]

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

[xiboothrezi]

The most important use case for exchange tokens are using the tokens for trading at discount price and also using the tokens to pay for withdrawal fee at a discount price, it's very easy for any exchanges to build tokens cos use case is already available for the token

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


_{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.

[tippytoes]

This token will represent their identity at the same time will help them in operation of their business or as a form of gift or voucher that can be use in their platform. Sometimes I just use it to park some of my crypto since their value is not volatile unlike others, well it's still depend on what exchange. Having it's token is like being part of their company where we have our right to have discount or to atleast earn from them.

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.

[Retainly_Collie]

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.

[bitcon]

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.

[Febo]

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?

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.

[mdzahed134]

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.   

[Spaffin]

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.

[Ken_terrance]

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?

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

[noormcs5]

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?

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.

[bitbollo]

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.

[Mighty_crypt]

It's an advantage worth taking  , 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

[Quidat]

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?

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.

[ice18]

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.