Native Tokens of The Best Cryptocurrency Exchanges
An Upcoming IEO of EXMO Coin: Use Cases, Tokenomics, Business Model
Today, investments in the cryptocurrency platform’s internal assets are becoming more and more popular, since they are crypto-infrastructure projects — coins price grows and further development are almost guaranteed. Moreover, such tokens and assets will continue the internal development of the ecosystems of their native platforms.
Please, notice that I do not impose my views on anyone, and I do not insist on their authority. All the conclusions and decisions about your personal investments should be made according to your OWN decision.
But, the analysis is also important: do your own researches and use ready crypto-analytics like an additional opinion. I have studied lots of information on this topic, so I decided to share it here ;)
For those who do not want to make decisions on their own, hundreds of chats and crypto signal pools are available on the market, both paid and free. The choice is always up to you: think by yourself or lean on someone’s advice.
EXMO Cryptocurrency Platform offers an every week free analytics (EN, RU) on their TradingView profile page, and also publishes it in the News section of the exchange.
I started my analysis due to my personal interest. The main points of interest, for me, were:
1. The hype around BNB Coin, its rapid growth and success;
2. Different operation principle of different coins on their native platforms;
3. Some new native exchange coins such as the EXMO Coin
To consider the issue of exchange international tokens, we took 6 large crypto exchanges as an example: Binance, Huobi, KuCoin, OKEx, Bitfinex, and EXMO with the upcoming release of the EXMO Coin.
After making a deep analysis of the already existing native crypto platform’s assets I decided to give a short and simple outlook.
The basic information, which is presented below, will disclose what is the difference between native exchange tokens and “traditional” cryptocurrencies.
Binance Coin(BNB)
Available Supply: 140 M / 188 M
Genesis Date: 08 July 2017
Coin Price: $28,91 USD
ROI: over +9000%
A short “About”: BNB is the crypto-coin issued by Binance exchange, it runs on the Ethereum blockchain with ERC-20 standard.
The Binance coin is expected to fuel the operations of the Binance exchange and its ecosystem. It supports multiple utilities on the Binance ecosystem, which includes paying for trading fees, exchange fees, listing fees, and any other fees on the Binance exchange.
Huobi Token(HT)
Available Supply: 40 M / 500 M
Genesis Date: 31 January 2018
Coin Price: $4,54
ROI: +213%
A short “About” HT is the Huobi Global Ecological Token, it is a decentralized digital asset based on Ethereum.
HT holders enjoy the corresponding benefits of the whole ecosystem of Huobi and get ecological sub-token rewards, as well as the valuable promotion brought by sustained repurchase and destruction.
KuCoin Shares(KCS)
Available Supply: 90.3 M / 180 M
Genesis Date: 22 August 2017
Coin Price: $1,36 USD
ROI: +98%
A short “About” KCS is the ecological token of the KuCoin Exchange Platform. It is the ERC-20 decentralized digital asset built on Ethereum. In accordance with the KCS whitepaper, KuCoin will use 10% of profits to implement the KCS buyback and burn, where KCS is purchased from the market and then burnt. Users can track the records on the blockchain.
OKB
Available Supply: 300 M / 300 M
Genesis Date: 06 June 2018
Coin Price: $2,59 USD
ROI:-290%
A short “About” OKB is a global utility token of the OKEX platform, it operates on the Ethereum platform. It is set to connect prospective digital asset projects to OKEx users as well as professional investors, creating an OKEx ecosystem that helps to advance the development of blockchain technology and the digital asset industry.
Leo Token (LEO)
Available Supply: 1 Billion / 1 Billion
Genesis Date: 20 May 2019
Coin Price: $0,029918
ROI: +82%
A short “About”: LEO token is launched by Bitfinex. According to rumors, the coin was created to compensate the shortage of $ 850 million, which were frozen in the accounts of the Crypto Capital payment processor.
As we see, all these coins differ in how do they work, and surely they have both different and similar “bonuses” when using within the system.
The coin that differs from the rest is BNB created by Binance. It is simply impossible not to mention it separately since it is just a sensational “rocket” coin, that lives its own life and goes against the market.
At the same time, we can say that Bitfinex also has serious plans and follows the Binance’s footsteps.
Other exchanges play a completely different game. At the moment, they clearly correlate with market trends and are moving in the exact direction where the market is moving. I did not manage to find any clearly expressed ambitions on the basis of these data.
EXMO Coin (EXM)
Available Supply:
As I already mentioned, EXMO is now on the Sales Stage and the Roadmap of its Sales is outlined below:
I was pleasantly surprised with the information on EXMO Coin IEO Stages II and III: As we see from the picture above — the first stage of IEO starts on 1 August 2019, and the others are tied to the technical improvements of the EXMO Cryptocurrency Exchange. In other words, the platforms team could collect users funds without any responsibilities, but they decided to start the second round right after the Stop Orders implementation, which is a very necessary part of Trading. The third stage will start after the EXMO mobile app will be available.
EXMO Coin in a nutshell:
EXM is the internal exchange ERC-20 token of the largest cryptocurrency exchange in Eastern Europe EXMO. EXM enables exchange clients to get access to the unique bonuses and special offers: lower trading commissions, copy trading services, higher referral payments and there is more! The list of advantages for EXMO Coin holders seems to be constantly extending.
EXMO Team claims using EXMO Coin to:
- Get a higher cashback rate and cut user commissions up to 50%;
- Copy Trading function — the ability to copy best practices from successful traders;
- Cloud mining — access to the mining capacity of EXMO partners;
- Lower margin fees — get a discount when paying margin fees in EXMO Coin;
- Voting right to list and delist assets;
- Referral Program bonuses — higher payments for referrals who trade in EXMO Coins.
- VIP Support — Instant 24/7 support to answer any questions and solve any problems.
Also, EXM holders get some small additional perks like:
- Access to the exchange chat without limitations;
- Ability to vote for the listing and delisting of any coins;
- Discount while participating in IEO;
- PRO status and highlighted login;
- Frontlisting. During the first 3 days of the listing, there will be just one trading pair — with EXMO Coin,
and more.
Let’s have a closer look at those bonuses, which I find interesting the most.
Voting right
On the one hand, new assets represent new investment opportunities. On the other hand, they are fraught with certain risks. EXMO team aims to conduct a rigorous analysis of all projects considered for listing, but the specialists might overlook certain important details. Giving a voice to the platform’s users is an awesome idea.
Copy-trading
The traditional form of copy trading is a manner of investing where professional exchange traders allow newbies or traders with limited time for trading to mirror all the trades performed by the professional. One way that copy trading differs from investing with a financial consultant is that the newbies don’t need to physically transfer their assets. User’s capital remains with them while the trades are mirrored to what the professional trader is doing with his capital.
Coin burning
An interesting thing that part of the EXM tokens will be burned every quarter. EXMO Coins received from premium cashback sales will be burnt until 50% of the tokens remain.
Let’s sum up:
Native tokens of cryptocurrency platforms are becoming an alternative to the “traditional” type of cryptocurrencies. We found out that for such a model of coins, both the exchange and the investor are interested in the asset “sustainability”. As we mentioned above, the internal tokens are tied to the infrastructure of the exchange, allowing it to grow and attract new users, and the token itself — to grow in value.
One of the main reasons for the popularity of such coins is that exchanges are no longer ONLY exchanges — they become multifunctional platforms, where both experts and beginners in cryptocurrencies find the right purposes for themselves. The exchanges won’t be limited only to these innovations and will come up with new incentives to attract users and funds.
However, no matter how attractive the conditions are — read the White Paper of the project, and don’t forget about the risks, which accompany any IEO.
