Potential Upside in Exchange Tokens

[R1dwanRz]

If there's one thing crypto traders love, it's a good opportunity. But I sometimes wonder if exchange native tokens don't get enough attention compared to major coins like BTC.
These assets, like Binance's BNB, OKEx's OKB, and Huobi's HT, provide direct exposure to the growth of leading cryptocurrency exchanges. As platforms expand globally and attract more users, their native tokens could see demand increase in parallel.

2023 showed the potential upside of these often overlooked assets. Reports indicated Bitget's BGB native token significantly outperformed Bitcoin and other exchange tokens last year, gaining over 200%.

You can see the performance report below:
https://twitter.com/ICO_Analytics/status/1763637663175733467?s=20

Best of all, as the holder of exchange native tokens you can benefit from staking, launchpad allocations, trading bonuses and more perks provided by the platforms. With continued competition between exchanges to scale globally, 2024 could be another breakout year for exchange tokens if networks expand as predicted. But what do you think of the tokens guys?

[batang_bitcoin]

They are actually getting attention just as the exchange itself. But of course, you'd see those that are really getting the attention of the most than those that don't. But I think that even with that classification, all of them have got a value that many are interested to buy them because of the business the exchange itself and also the market capitalization and volume that the actual token gets.

[Mpamaegbu]

The likes of Tidex and Bitrue tokens haven't got the level of attraction HT, KCS, BNB or OKB has got because those exchanges themselves don't have much patronage. BNB is where it's today because of the type of traction the Binance exchange has, coupled with the incentives it makes for subscribers who transact using its BNB native token. You've to give out something to get something. That's a cardinal principle of life.

[tsaroz]

There was a boost in price of Exchange tokens in the last bull and we could expect the same this time. The thing that's a bit changed than the last time is volume of Exchanges happening in centralized and decentralized exchanges. I don't have the exact data but DEX at the moment might be making larger amount of transactions than centralized exchange makes. That means the growth could be much larger on network tokens that act as gas for the transaction. There would also be boost on dex tokens as there are incentive for larger number of transactions and centralized exchange tokens too would enjoy the price boost in increased traffic.

[Ticdeneb]

You've to give out something to get something. That's a cardinal principle of life.
[/quote]

You know what? I absolutely agree with you on the above statement. This is super applicable in economic and social exchanges.

Bitget in recent times have sought to push themselves further and expanded in virtually all areas of their operations not limited to collaborations, boosting user confidence by increasing their protection funds, there have been multiple launchpool and launchpad events that undoubtedly positioned BGB in a way to be highly sought after.  Other exchanges will experience the same if they put in the work.

[Yogee]

[...] I don't have the exact data but DEX at the moment might be making larger amount of transactions than centralized exchange makes.

It's the airdrops that these DEXs or swap aggregators are usually using to increase volume and demand of their token. Solana has a lot of them and projects in other chains like Cosmos are doing a similar thing.

That's probably where I would put money on instead of the old exchange tokens except maybe BNB.

[Phoenixtrader]

They are actually getting attention just as the exchange itself. But of course, you'd see those that are really getting the attention of the most than those that don't. But I think that even with that classification, all of them have got a value that many are interested to buy them because of the business the exchange itself and also the market capitalization and volume that the actual token gets.

They must be doing something right though..their growth over the last five years has been outstanding. I hope it continues.

[slashz9]

I think the main competitor of the main exchange at the moment is bybit but if bitget is there then this is a good thing, we will have many choices to use a decent exchange, and everyone will not choose 1 exchange all the time.

[EarnOnVictor]

-snip-
 But what do you think of the tokens guys?

I view the tokens of exchanges as their stocks because many do not bother to be listed on any stock platform. For this, these token are their security, and people's investment and the news of the company (good or bad) would mostly be the determinants of the status of the tokens. Also, everything happening in the crypto space will surely impact these tokens in a way. The impact may not be huge, but still, it will happen as we are seeing now in the market. It takes either huge news happening to the exchange to cause a huge impact on the token, just like what happened when Binance and CZ were indicted with money laundering last year and over $4B fine was slammed on Binance.

You can see how BNB dropped so much within a few days. The same thing could have happened in the opposite manner if it was good news. This is why we should only buy the tokens of the exchanges we have huge trust in, especially the top-rated ones, and not those ones who are still fighting for relevance or have questionable characters. Also, the bigger the event that can affect the crypto space, the bigger the effect could be on these tokens as well. As we see in recent months, for instance, all crypto assets have been bullish, so almost all exchanges' tokens would buy significantly too, if not all.

So, this is the right time to purchase the token of exchanges even as we move closer to the post-halving period and also the altcoins season where huge returns are always achieved

[Text]

These exchange tokens provide a unique opportunity for investors. They not only represent a stake in the success of the respective platforms but also offer additional benefits like staking rewards, trading bonuses, and more. The potential of exchange tokens largely depends on the success and growth of the respective platforms. Competition among exchanges is inevitable due to the demand for them, especially when they face issues. The competition intensifies when there is a possibility of replacing the incumbent in the hot seat.

[btc78]

A lot of people might feel as though exchange tokens are too risky compared to other coins. Since exchange tokens are directly related to the exchange it is native on, its price will be affected by whatever is happening in the company.

While other coins are sometimes affected by the overall people's sentiments, exchange tokens are driven by news regarding that exchange. If it were to face a hardship, the price will surely plummet.

It is not yet very popular and not a lot of people are aware of exchange tokens which makes it risky in terms of legality. There is not yet much sanction to go by when it comes to exchange tokens.

It could also face some security issues. It is much more vulnerable to hacks as most exchange tokens are accessible through online. Thus increasing level of cybercrimes.

It could develop over time but for now it still has things it needs to fix so that more people will be attracted to it.

[yazher]

Actually, you can get some decent profit when investing in their tokens and also you can be assured that your investment will not get easily lost like the other risky tokens out there. They also keep updating their platforms which makes their tokens increase their price depends how good it is and how popular it can be to the investors and their users. Nevertheless, if you are not sure which altcoins to buy in this halving season, you could just choose one of those and have confidence that it will also raise its price once the bull runs will gonna happen this time again.

[kentrolla]

There are various reasons why the value of exchange token has been surging. As it's limited to major CEX tokens which has been on a rally it's due to the popularity of the exchanges as well as staking programs and we have seen this often in Binance whenever there is a new project launched and BNB is staked it increases the value of BNB.

But, there was an atmosphere of fear amongst users when it comes to exchange tokens especially after the FTX and Luna setbacks.

[synchronym]

Of course, when you decide to invest in which tokens, observe the tokens carefully. If you have a little idea of ​​how the market will be in the future, you may be able to profit by buying the tokens. There are many tokens that you can get success by investing but before investing you must read enough about that token and then invest. Don't invest in the wrong tokens by mistake, then you may lose money, so invest in tokens carefully.

[Dunamisx]

If there's one thing crypto traders love, it's a good opportunity. But I sometimes wonder if exchange native tokens don't get enough attention compared to major coins like BTC.
These assets, like Binance's BNB, OKEx's OKB, and Huobi's HT, provide direct exposure to the growth of leading cryptocurrency exchanges. As platforms expand globally and attract more users, their native tokens could see demand increase in parallel.

If you're considering cryptocurrencies at large, it more better to stop comparing bitcoin to the way other cryptocurrencies token or coins do perform, even the Binance coin which is BNB is far away to where coin like ethereum is, those coin only got the pinnacle of where they are because of the way the exchanges have been ranked on a global ranking system and the influence that they have being promoted by the exchange in which many of their users often see on the exchange.

[Cryptoababe]

I think the main competitor of the main exchange at the moment is bybit but if bitget is there then this is a good thing, we will have many choices to use a decent exchange, and everyone will not choose 1 exchange all the time.

The OP is actually talking about Exchange tokens. I think bybit coin is MNT (Mantle) which is used for transaction fees on ETH Layer 2. But with that, $BGB outperformed it.
If $BGB could achieve 200% in that period of time without having Its on Blockchain yet, there is surely more to come and this will make it exchange be a very strong competitor with other top exchanges when that happens.

The potential of exchange tokens largely depends on the success and growth of the respective platforms.

And from here, it relates to what I've said earlier. $BGB has higher potential because there is still more development coming to give the token more purpose/usefulness.

[Dailyscript]

They are actually getting attention just as the exchange itself. But of course, you'd see those that are really getting the attention of the most than those that don't. But I think that even with that classification, all of them have got a value that many are interested to buy them because of the business the exchange itself and also the market capitalization and volume that the actual token gets.

Your right They are gaining massive attention. Look at Binance; it is a typical example. These big cryptocurrencies couldn't exist without these exchanges, and vice versa. They both need to work hand in hand to bring about the growth of digital currencies. Also, these exchanges do not care much about there price unless its an exchange that has a coin that has good usage, just like Binance BNB.

[el kaka22]

I agree that it takes a bit of time for these to go up, but when the bull market arrives, that would mean that exchanges will have higher trading volume, and when they have a higher trading volume, that means their coins will be bought a lot more. Imagine Binance having 10x more volume than what it has right now, that would mean that BNB would also be bought a lot more to pay less trading fee that way, along with having a good amount of increase due to bull run, it would also have trading fee reasons why people would buy.

When you combine those two together, the price will probably go up a lot. So, this halving and the upcoming expected bull run should see these exchange coins to be increasing in price a lot, or at least that's what people expect.

[o48o]

If there's one thing crypto traders love, it's a good opportunity. But I sometimes wonder if exchange native tokens don't get enough attention compared to major coins like BTC.

-cut-
Best of all, as the holder of exchange native tokens you can benefit from staking, launchpad allocations, trading bonuses and more perks provided by the platforms. With continued competition between exchanges to scale globally, 2024 could be another breakout year for exchange tokens if networks expand as predicted. But what do you think of the tokens guys?

Because you can't even compare them. BTC is a decentralized cryptocurrency, while exchange tokens are by definition very much centralized around the exchange. And they DO get major exposure all the time. Most of them have substantial marketcap already, so they aren't any more overlooked more then any other altcoins out there.

Smaller marketcap tokens outperforming BTC isn't really surprising as they are obviously going to be more volatile then BTC,

And it isn't real "staking" you are doing with them. Staking is securing transactions for the blockchain and getting rewards without third party CEXes. Exchanges just call that bullshit staking because if they would call it "earning interest" it would be harder to justify that it's not a investment contract and unregistered security.

[strunberg]

Bitget in recent times have sought to push themselves further and expanded in virtually all areas of their operations not limited to collaborations, boosting user confidence by increasing their protection funds, there have been multiple launchpool and launchpad events that undoubtedly positioned BGB in a way to be highly sought after.  Other exchanges will experience the same if they put in the work.

I've bought some BGBs in the last few weeks because I believe that they will be one of the blue chips in the next few years. BGB and Bitget are still not big exchanges but I am confident in their future potential. I've tried using Bitget and to be honest they are quite good and currently they are improving their business. This is not financial advice but I myself have tried investing a few hundred dollars in BGB.