Is exchange based tokens worth for hold?

[Tipstar]

Exchange based tokens increases in price when there demand is high. The demand is higher when there are larger number of transactions are happening in the said exchange. That happens when there is a bull run. So in short almost all tokens of popular exchanges rises upto 100% where there's a bull run. They are a good investment both as buying low and selling high and as cheap way to make transactions happen. I happen to buy a few number of exchange tokens when I have money to spare. It's a good investment if you believe in the future of the exchange.

[iv4n]

Well, some exchange-based tokens have had pretty good success over the years... now most of them have lost a lot of value, but I believe that some of them will make new records. Some of them for sure, but which one is hard to say, that's why investing is similar to gambling. Any exchange, doesn't matter how big or small is, can end up like FTX, one of the recent examples. I have some exchange tokens, but nothing much, it's ok to invest in some risky stuff as long as we don't risk everything we have.

[internetional]

It makes sense to keep cryptocurrency exchange tokens on your balance on the exchange if you use the exchange's services and the exchange offers discounts on fees when paying with these tokens. And if the exchange offers margin trading with these tokens, you can buy them to pay fees and simultaneously short them to avoid losing money in case of a price drop.

[radjie]

For now, many new Altcoins are creating their own exchanges, of course that is aimed at attracting more investors and more people using them, but before putting any money into it, it's best to first look at the liquidity of the associated token.
There are many problems with new exchange tokens unable to develop their own projects, therefore, exchange-based tokens do not guarantee good potential in the future

[DabsPoorVersion]

As an investor, i bought so many exchange based tokens! Bnb, uniswap, kucoin (kcs), cake, houbi (ht),  FTP and so on. Undoubtedly those exchangers are so big and reputable. I though those altcoins will pump if exchange get larger during time and if exchange add more pair with their altcoin on their platform, then price will boom but most of those are like shitcoin, dumped 70-80℅ in long run except bnb. So what do you think? I'm no longer going to invest any exchange coin anymore!

Its risky mate. Just one bad news regarding the exchange or if the exchange was hacked, all ypur money will be gone. Also, don't bag altcoins especially exchange tokens for a long period of time. It is best not to be loyal on some coins and hold them as you will missed a lot of opportunities to buy other coins that might go up. Once you made a profit, better to buy another coin next than staying loyal.

[AmoreJaz]

For now, many new Altcoins are creating their own exchanges, of course that is aimed at attracting more investors and more people using them, but before putting any money into it, it's best to first look at the liquidity of the associated token.
There are many problems with new exchange tokens unable to develop their own projects, therefore, exchange-based tokens do not guarantee good potential in the future

the lifespan of any exchange token or coin depends on the trading platform itself. this is why very few of them have the chance to survive long. what you can see here is that bnb is the like the strongest of them. as it is the top exchange right now. but we can't assure that they will have the same status in the future. as a holder, what you can do is keep up with their developments and see where they are heading to.

[nelson4lov]

Exchange-based altcoins are one of the safest ways to invest, but this is only true if you are an early bird, I'm the lucky ones to have been an early investor in PancakeSwap (CAKE). If you invest your money in exchange-based altcoins when their ecosystem is already large, you will only be a loser or only make a small profit from it.

There are lots of L-1 projects popping up mate, my advice, you better pay attention to these projects instead of investing in exchange-based altcoins.

I agree with some of the points you made, other points, not so much. The part about exchange tokens being the safest assets to invest in crypto doesn't hold true most times and it depends on when you got in. For someone who gets in when the price have gone up, not so great. In the current bear market, exchange tokens have suffered from market downturns but are holding up better since exchange business is still a profitable business. Binance used to burn BNB tokens to reduce the supply when helps the price to stay afloat even in terrible market conditions.

[Rengga Jati]

As an investor, i bought so many exchange based tokens! Bnb, uniswap, kucoin (kcs), cake, houbi (ht),  FTP and so on. Undoubtedly those exchangers are so big and reputable. I though those altcoins will pump if exchange get larger during time and if exchange add more pair with their altcoin on their platform, then price will boom but most of those are like shitcoin, dumped 70-80℅ in long run except bnb. So what do you think? I'm no longer going to invest any exchange coin anymore!

Currently, all coins and even Bitcoin are still experiencing a bearish era, so all of them are still far below their price and may not have met our high expectations. We still need to see how their potential will be in the future, especially in the bullish era later.
Regarding token/coin-based exchanges, in my opinion, it will really depend on the coin and the exchange platform. But actually, they should have a bigger chance than some other usual altcoins, because after all, exchange tokens usually have a different function, and are usually used for transactions on the exchange platform or used as something interesting on the exchange. And if they do have a good market cap and as long as they are still actively used, this will probably continue to grow. but again, no one can guarantee that 100%. All altcoins will still have a risk. So, you should really be careful even if it's an exchange token. I personally only hold BNB at the moment and believe that the coin will go up quite well in the future.

[hugeblack]

Exchange based tokens are a reflection of the extent of the financial capabilities of those exchanges, and given that these platforms do not define these tokens as an investment, and it is difficult to find an exchange that has continued as TOP 20 rank crypto exchange for more than 5 years, I think it is a bad investment if you want to consider it a long-term investment. We can consider it a medium and short-term investment if you are sure that the platform will grow in the coming years (less than 3 years) or are sure that there is an event or variable that will lead to an increase in demand for that platform and thus increase the value of the token. Otherwise, it is a bad investment.

[Huppercase]

As an investor, i bought so many exchange based tokens! Bnb, uniswap, kucoin (kcs), cake, houbi (ht),  FTP and so on. Undoubtedly those exchangers are so big and reputable. I though those altcoins will pump if exchange get larger during time and if exchange add more pair with their altcoin on their platform, then price will boom but most of those are like shitcoin, dumped 70-80℅ in long run except bnb. So what do you think? I'm no longer going to invest any exchange coin anymore!

Do you know what gave people an impression that exchange token were good back then, it was because of the utility they had as an IEO. It was Binance that started it back then when they use to allow some users have access to early token sale and sell for high price usually around 5X and above, so this tokens were the hype in the town then, so kucoin and other exchanges follow together and that's how they become the best thing to invest, you know people follow the trend in crypto.

However, when the IDO which is initial decentralize offering becomes the new hot trend that gives 100x in profit as compare to IEO, investors moved to IDO and abandoned the centralized exchange token for launchpad tokens, it was crazy how you see people make thousands by locking launchpad tokens but all of those tokens are dead like the exchange tokens, they don't boom like before again.

Decentralize exchange tokens were popular because of their tokens that were Airdrop and prioritize by exchanges back then. Like Binance for example supported pancakeswap because it was launched on their BSC network and you know what happened when Binance pick interest in a project, it was massively pump as everyone thinks it's the next BNB that will change decentralize tokens but all are nothing but scams.

[o48o]

Do you know what gave people an impression that exchange token were good back then, it was because of the utility they had as an IEO. It was Binance that started it back then when they use to allow some users have access to early token sale and sell for high price usually around 5X and above, so this tokens were the hype in the town then, so kucoin and other exchanges follow together and that's how they become the best thing to invest, you know people follow the trend in crypto.

However, when the IDO which is initial decentralize offering becomes the new hot trend that gives 100x in profit as compare to IEO, investors moved to IDO and abandoned the centralized exchange token for launchpad tokens, it was crazy how you see people make thousands by locking launchpad tokens but all of those tokens are dead like the exchange tokens, they don't boom like before again.

Decentralize exchange tokens were popular because of their tokens that were Airdrop and prioritize by exchanges back then. Like Binance for example supported pancakeswap because it was launched on their BSC network and you know what happened when Binance pick interest in a project, it was massively pump as everyone thinks it's the next BNB that will change decentralize tokens but all are nothing but scams.

Well those are not the only reasons people buy them. For example Unu Sed Leo is bought back from the markets by bitfinex cex and they are burning it all the time. and they are very transparent on it. And unlike bnb that's going to burn 50%, Unused isn't going to stop there. They just keep buying. And even though that's not happening too fast, it reads on their whitepaper, that if they get their stolen bitcoins back, they are going to use them to marketbuy all the Unu Sed Leo they can. So it's a speculative asset that could potentially make people very rich if everything goes according to plan.

[tsaroz]

Exchange based tokens specially from centralized exchanges are a good investment at the moment considering their price point and potential for future rise. All of these tokens have value added to them on virtue of use of that exchange be it for transaction fees, participation in pre-sales or burning the coins through exchange profits. For a good investment, you should decide the good exchanges. The exchange that would remain a top place for traders would give profit on it's coin while scams and failures like FTX would make you loose. DEX are not as good of investment now as the market is still highly volatile.

[Xal0lex]

As an investor, i bought so many exchange based tokens! Bnb, uniswap, kucoin (kcs), cake, houbi (ht),  FTP and so on. Undoubtedly those exchangers are so big and reputable. I though those altcoins will pump if exchange get larger during time and if exchange add more pair with their altcoin on their platform, then price will boom but most of those are like shitcoin, dumped 70-80℅ in long run except bnb. So what do you think? I'm no longer going to invest any exchange coin anymore!

These tokens are good to buy before the global bull run, because during such periods trading volumes increase dramatically and these tokens start to grow in value, but at the same time I can't say that these tokens are great for a long-term hold. I mean, they are just like altcoins, which are directly dependent on the state of the market and therefore, when a bearish trend starts, they should be sold in time.

[dimonstration]

So what do you think? I'm no longer going to invest any exchange coin anymore!

Exchange token is not that hype anymore for investment purposes because most of the exchange is already fully developed unlike which exchange is just starting to introduce this kind of utility token that is not normal to crypto investment. So far, most exchange has their own utility tokens that gives this kind of token less in demand compared before that you can benefit on it since only few exchange has it.

Keeping some of them to reduce trading fee is good but holding them as investment will not gonna make you good return just like before.

[trangdichvuj28]

You invested at the wrong timing. Almost any token on an exchange experiences growth during an uptrend season, while during a downtrend, almost all tokens tend to decrease significantly in value.

[Apocollapse]

Worth for hold if you're using the exchange and you're a big trader, because staking in their own exchange will give you some benefit e.g. trading fee reduction, VIP group, voucher, gift etc.

If you're not use the exchange, it's really not worth to buy token base exchange.

Always remember there's no centralized exchange will last forever, they're just waiting the time to get hacked and went to bankrupt.

[Hispo]

To be honest, I prefer to stay away from exchange tokens specially if they are centralized exchanges as Binance is. Those tokens tend to be strictly tied to the performance of the exchange and the decisions taken either by the CEO or whales (in case of decentralized exchanges which use their tokens as governance votes).

It would be easy for someone not to be paying enough attention while something very relevant is going on in the exchange which issued those tokens one has bought.

There is also the future risk of those tokens being legally considered as unregistered securities, and the SEC taking actions, translating to a drop in the price. If you have enough time to monitor the exchange news and the lawsuits, then it is fine to invest in those tokens, otherwise it would be better just to put money on coins you truly believe in and there is a very unlikely possibillity of being targeted by SEC.

[Adbitco]

Sincerely speaking, altcoin are altcoin so they are pron to have risk as well being an exchange doesn't guaranteed price soaring like no other. I think Uni did well during their first one year of after their airdrops but I don't know what happened about the sudden dropped, and BNB of Binance exchange is another strong token that doesn't significantly dropped like other but, I guess it was because lots of projects has configured their tokens using bsc and this alone gives them a solid foundation to remain strong in the market today.
So to me I classified altcoin to be same so, why not change your investment plan or holding more of bitcoin and less of altcoin with this your risk of losing is minimal.

[Ziskinberg]

As an investor, i bought so many exchange based tokens! Bnb, uniswap, kucoin (kcs), cake, houbi (ht),  FTP and so on. Undoubtedly those exchangers are so big and reputable. I though those altcoins will pump if exchange get larger during time and if exchange add more pair with their altcoin on their platform, then price will boom but most of those are like shitcoin, dumped 70-80℅ in long run except bnb. So what do you think? I'm no longer going to invest any exchange coin anymore!

Based on your experience, you can see what really happened and could think if it is worth continuing or just selling them for a better opportunity.
Whether it is an exchanger token or not, I don't keep it when I notice that there is no improvement because it is just like we wasting our time waiting for nothing. In fact, there are a lot of potential coins that are worth investing in and are more profitable than these exchange tokens. Well, BNB is different but still, if we look it is not really profitable, we can diversify our investment to a better one.

[Husires]

As an investor, i bought so many exchange based tokens! Bnb, uniswap, kucoin (kcs), cake, houbi (ht),  FTP and so on. Undoubtedly those exchangers are so big and reputable. I though those altcoins will pump if exchange get larger during time and if exchange add more pair with their altcoin on their platform, then price will boom but most of those are like shitcoin, dumped 70-80℅ in long run except bnb. So what do you think? I'm no longer going to invest any exchange coin anymore!

Why did you exclude BNB? Like other currencies, it is centralized, controllable, and depends mainly on Binance. In short, by purchasing BNB, you trust the future of Binance. If you expect that they will continue to make themselves the number one platform, the price will rise, otherwise the price may quickly reach zero because it is completely centralized.
It is like trusting the local currencies of a developing country, and perhaps investing in BNB is more risky than that. If I were you, I would invest in new CEXs tokens that can grow quickly, the ones that are trying to make their way between the ranking of top crypto exchange if they succeed in that, the price will rise like crazy, and if they fail, I will not invest more than 5%.