Exchanges Native Token And Bitcoin

[alastantiger]

Often referred to as a "utility token" since it has usage on the exchange, an exchange token is one that is unique to a cryptocurrency exchange and was created by the company that manages the exchange. Examples of exchange token Binance's BNB and FTX's FTT,  KuCoin (KCS), Bitfinex (LEO), Crypto.com (CRO), OKX (OKB), and Huobi Global (HT).

Considering that exchange tokens contributed to the prolonged bear market and FUD a typical case study being Terra Luna and FTX. There are also other risk involved in dealing with exchange tokens which in the long run does more harm than good to Bitcoin. I think that crypto exchanges shouldn't have their own native token. I may be wrong but I would love to get your opinions on this. Should crypto exchanges have their own native token?

Reference - https://decrypt.co/resources/what-you-need-to-know-about-exchange-tokens-after-ftx-meltdown

[Apocollapse]

There's no relation between exchange native token and Bitcoin.

Bitcoin is decentralized, no one can control the price, limited supply, independent, no one can freeze the coins. While exchange native token is centralized, the developer can control the price and manipulate it, unlimited supply, must need centralized exchange to trade, the developer can freeze their coins.

The only utility of those exchange native token is for the user who use their exchange, but since I avoid to use centralized exchange, there's no point for me to buy this shitcoins.

[Edwardard]

Considering that exchange tokens contributed to the prolonged bear market and FUD a typical case study being Terra Luna and FTX.

TerraLuna was/is not an exchange token. Luna was used to run its algorithmic stable coin UST.

Should crypto exchanges have their own native token?

Having a token of their own gives us an idea about the performance of the exchange overall and customer satisfaction. You should also know that whether a big exchange has its own native token or not doesnt matter, it'll still affect BTC (only for short term), if they go bankrupt but then again BTC will go on its own.
Do you know BNB (Binance exchange token), had a decent bull run during 2018 in terms of sats., while BTC went into bear mode? It didn't help btc to go up those days.
In short, everything is just noise for BTC. It'll do what it wants to.

[Z-tight]

I think that crypto exchanges shouldn't have their own native token. I may be wrong but I would love to get your opinions on this. Should crypto exchanges have their own native token?

Centralized crypto exchanges create their native tokens for many reasons that help to promote their exchange and help their business, exchanges native tokens isn't the cause of the numerous collapse of centralized services in the industry, it is caused by the owners of these services who are involved in shady activities with the funds of creditors, it has nothing to do with an exchange having its own token.

Though it goes without saying that an investor should not hold an exchange token for too long, it is the same mistake as leaving your money on an exchange, if the exchange falls, those who have their funds in the fallen exchange and the holders of their native tokens anywhere are going to lose their money, because the value of the native token will drop to nothing.

[rdbase]

The issue with exchange tokens are they can be used by sort of IOU as is the case that is currently underway in a high profile case with FTX and Sam Bankman Fried and Caroline Ellison.
This was viewed as if they are printing their own coins out of thin air and anyone can do this.
That is what will be brought up in the court case filed against FTX and will be a major subject within the next few months when it comes to exchange regulation. Because now Binance is having their books being looked into with their own exchange token by investigating parties.

[albon]

There are also other risk involved in dealing with exchange tokens which in the long run does more harm than good to Bitcoin. I think that crypto exchanges shouldn't have their own native token. I may be wrong but I would love to get your opinions on this. Should crypto exchanges have their own native token?

Not all exchange platforms have their native token, but most of the famous exchange platforms create their native token in order to promote and use it by platform users in paying service fees, settling transaction fees, or in paying staking rewards, providing liquidity, and others, which will help increase the adoption and investment of the token and increase its popularity, which will It helps to increase the demand for it and its price increases, which will benefit its creators, who are the exchange platform team. To be honest, I do not like the native token for exchanges, because investing in them is very risky if the platform is exposed to bankruptcy, hacking, or otherwise, the native token will collapse, as happened to the FTX platform and its currency, so Bitcoin is the safest currency, and there are many altcoins that suffice us and keep us away from the native token of the exchange platforms.

[tabas]

I think that crypto exchanges shouldn't have their own native token. I may be wrong but I would love to get your opinions on this. Should crypto exchanges have their own native token?

It's in the between of yes and no for me. And I'll go with the no first, it's because that it's been oversaturated and every new exchange right now starts to make one for themselves and it's no longer about the use case and utility but more like a crowdfunding to them.
While it's a yes, since it's seen that it's part of those exchanges success when they've launched it and managed to reach the peak that they're experiencing right now.

[jrrsparkles]

Often referred to as a "utility token" since it has usage on the exchange, an exchange token is one that is unique to a cryptocurrency exchange and was created by the company that manages the exchange. Examples of exchange token Binance's BNB and FTX's FTT,  KuCoin (KCS), Bitfinex (LEO), Crypto.com (CRO), OKX (OKB), and Huobi Global (HT).

Considering that exchange tokens contributed to the prolonged bear market and FUD a typical case study being Terra Luna and FTX. There are also other risk involved in dealing with exchange tokens which in the long run does more harm than good to Bitcoin. I think that crypto exchanges shouldn't have their own native token. I may be wrong but I would love to get your opinions on this. Should crypto exchanges have their own native token?

Reference - https://decrypt.co/resources/what-you-need-to-know-about-exchange-tokens-after-ftx-meltdown

Actually no one can stop the exchange from creating their own token because anyone can create their token or coin if they have all the requirement it needs so when exchange wants one they can create.

But the value of those tokens are directly related to the exchange and it has no utility other than being used on that particular exchange but there are some exceptions like BNB which started as token now has its own blockchain network called BSC which they claim to be an alternative to ethereum blockchain which may not be 100% true but their journey has lot than being involved in bump and dump.

[noorman0]

Do you know about what utility tokens actually do?
If you support them then it is necessary. Exchanges need a lot of fresh funds so they can develop and expand. They started creating tokens from "nothing" as a symbol of your support financially (capital)

-snip-
There are also other risk involved in dealing with exchange tokens which in the long run does more harm than good to Bitcoin.

Such tokens do not harm or benefit bitcoin in any way.

[Jawhead999]

The reason why almost centralized exchanges right now has their own native token is to make more money. It's true the exchange itself already make money from trading fee and charge additional fee on withdrawal, but they have nothing to lose to create their own native token, of course they will create it, right? Any business will try to expand their business to make more money, although it doesn't have any utility and benefit.

[Bitcoin_Arena]

Bitcoin was there before the emergence of the utility tokens, and I am sure as hell Bitcoin will just do fine when the utility token collapse. The exchange Utility tokens are just money making projects for the exchange owner, but people don't see it.

They are highly manipulated and so far a few have been exposed like CRO and FTT. If you want to know what manipulation is, just watch the chart of BNB when the market is on a trend. They day it will collapse, people are going to cry way harder than the FTT and Luna Saga,

[merekamo]

Although they are marketed as "utility tokens", they often end up contributing to a prolonged bear market and spreading FUD. As you mentioned, Terra Luna and FTX are examples of how things can go wrong with exchange tokens.

It's important to remember that Bitcoin is a completely different beast. It's decentralized, and no one can control its price or supply. It's independent, and no one can freeze your coins. On the other hand, exchange tokens are centralized, and the developers have a lot of control over the price and supply.

Plus, you need to use centralized exchanges to trade them, which goes against the decentralized ethos of the crypto space.

Personally, I don't use centralized exchanges, so I don't have much use for exchange tokens. But for those who do, it's important to be aware of the risks involved. While the tokens may have some utility for users of the exchange, they ultimately do more harm than good to the overall health of the crypto space.

[Findingnemo]

Generally I don't post in such old thread like this but this should be another proof why we should not trust the exchanges and their tokens for long term, Luna and FTX bite dust however Binance is also facing some pegging issues recently so we can't simply trust their reputation with our money, beware and choose the investment wisely.

[dansus021]

It has nothing to do with Bitcoin and yeah sooner or later the centralized exchange will eventually made their own token. Exchange token that actually useable from your list is BNB because they have native chain and have EVM-compatible chain called Smart Chain and also popular among the DeFi ecocsytem. The other it maybe me but i don't think to be useful enough

[kelonmusk]

There's no relation between exchange native token and Bitcoin.

Bitcoin is decentralized, no one can control the price, limited supply, independent, no one can freeze the coins. While exchange native token is centralized, the developer can control the price and manipulate it, unlimited supply, must need centralized exchange to trade, the developer can freeze their coins.

The only utility of those exchange native token is for the user who use their exchange, but since I avoid to use centralized exchange, there's no point for me to buy this shitcoins.

I completely agree with you. Exchange native tokens may have utility for users of the exchange, but they also come with a lot of risks. As you mentioned, these tokens contributed to the prolonged bear market and caused a lot of FUD.

And there are other risks involved too, like the centralization of these tokens and the fact that they can be manipulated by the exchange developers.

I think it would be better if crypto exchanges focused on providing a good user experience and offering fair trading fees instead of trying to create their own native tokens. These tokens can be very confusing for new users, and they may even discourage people from getting involved with crypto altogether.

[Cryptoababe]

Some crypto exchange tokens are useless but some are very useful even for crypto developers. Some are also used as utility token to make thier users be eligible for some kickstarter and lunchpad. Also, Uni token is an exchange token. IMO, we cant really blame exchange tokens for Bitcoin FUD, We can blame exchanges for that.