Exchanges Tokens - page 6. | Bitcointalksearch.org

Coin BTC

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Quote from: HammadAli on October 22, 2019, 12:39:41 AM

I have seen many exchanges have launched their own token like Binance with BNB, Idex with IDEX, Hotbit with HTB, Yobit with YO etc. where exchanges use their own tokens as another way to pay fees to support token. In addition to it, different strategies are used to create a hype like decrease in supply etc.
But if an exchange goes through a hard period of time and shuts downs then ultimately that token will come to its end because there is no community other than that exchange supporting the token simply because it has no usage outside the exchange.
According to me exchanges should promote the usage of their coins/tokens outside the exchange to build a community in support of it. If your community consists of huge individual entities who believe you then a great community can be formed. Otherwise lack of applications would lead these things to disaster.

Indeed, there are now many exchanges launching their own coins. But some of them are only in individual exchanges, they don't release other exchanges. For example Hotbit with HTB. There is no double exchange. In contrast to Binance which has expanded. If Hotbit is not able to survive, of course, their coins are meaningless. But if the parent exchange is no longer active, even though their coins are listed in many exchanges, the coin will sink. That is, there will be no users. But I am sure, if the exchange goes well, even though the coins are only registered in an individual exchange, then this coin will have a high value. This will even make it easier for CEOs to control the price of coins.

Kalimba

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No doubt, currently now almost all exchanges now have their own token in which is been promoted in their exchange, nothing like real use case, nobody knows what the token is all about, all they know is that the token is owned by a so called exchange, due to this, the token future is now been tied to the exchange, if the exchange keeps flourishing, then their is probability the token will also keep doing well in cryptocurrency market. Exchanges should learn how to build real community for their project, they should let their real use case visible to all cryptocurrency enthusiasts, doing this, real investors will fall in, with this the token can stand alone on his own.

Sterbens

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Duelbits.com

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Yep they should have a plan that their token can be useful outside the exchange if they really want to gain more community, not just only for payment and discounted fees of the exchange. More partnering big companies would be great support their token.

Partnership support is very difficult unless the project is good so there will be many requests for partnerships with large companies but the project now only relies on marketing from the developer so I think the token will be useful if their project is active in the product.

aemma

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Quote from: HammadAli on October 22, 2019, 12:39:41 AM

I have seen many exchanges have launched their own token like Binance with BNB, Idex with IDEX, Hotbit with HTB, Yobit with YO etc. where exchanges use their own tokens as another way to pay fees to support token. In addition to it, different strategies are used to create a hype like decrease in supply etc.
But if an exchange goes through a hard period of time and shuts downs then ultimately that token will come to its end because there is no community other than that exchange supporting the token simply because it has no usage outside the exchange.
According to me exchanges should promote the usage of their coins/tokens outside the exchange to build a community in support of it. If your community consists of huge individual entities who believe you then a great community can be formed. Otherwise lack of applications would lead these things to disaster.

Actually you made valid points, but I was just thinking what an exchange token utility will be outside the exchange, that means they will have a huge competition to face because there are tokens already trying to pitch their tents in various sectors and industries. Also, about an exchange shutting down, that is quite true as well because many exchanges has shut down due to hack and so on but however since till date no exchange token has been used outside the exchange (none I can remember), then it makes sense to only hold top exchanges token because they have their reputation to protect and will surely try everything possible to keep their exchange running, thus good for holders as well, and should there be a change in token utility then holders will also benefit from it.

Mighty_crypt

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Quote from: HammadAli on October 22, 2019, 12:39:41 AM

I have seen many exchanges have launched their own token like Binance with BNB, Idex with IDEX, Hotbit with HTB, Yobit with YO etc. where exchanges use their own tokens as another way to pay fees to support token. In addition to it, different strategies are used to create a hype like decrease in supply etc.
But if an exchange goes through a hard period of time and shuts downs then ultimately that token will come to its end because there is no community other than that exchange supporting the token simply because it has no usage outside the exchange.
According to me exchanges should promote the usage of their coins/tokens outside the exchange to build a community in support of it. If your community consists of huge individual entities who believe you then a great community can be formed. Otherwise lack of applications would lead these things to disaster.

The only risk involved with exchange tokens is if something bad happens to the exchange like hack then the tokens might be useless if the exchange has no more funds to keep running, since idex is DEX it's a bit safer and another thing is make sure you buy only top exchanges tokens because they hardly fade away

Mrchristo

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I agree to the fact that exchanges need to create usecase that is divergent from the exchange to ensure that the tokens find relevance even after the demise of the exchange.

But in real terms this would be difficult, most exchange tokens are solely for investment and fees settlement on the exchange. Even big exchange like binance have their exchange token traded on several other exchanges, but that doesn't change the fact that it's relevance is intrinsic to the exchange.

Logically speaking, if an exchange wants a token to have relevance outside the exchange, it simply creates a new one. I know binance has other tokens and stable coin outside the bnb which is her maiden exchange token.

bastian466

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PredX - AI-Powered Prediction Market

Exchange market making own tokens is a very mature strategy because it can get other benefits from the sale and purchase of other coins on the other side also to attract many communities to enter so that the exchange develops, the more that enters, the tokens will continue to live

BitKongy

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Quote from: HammadAli on October 22, 2019, 12:39:41 AM

I have seen many exchanges have launched their own token like Binance with BNB, Idex with IDEX, Hotbit with HTB, Yobit with YO etc. where exchanges use their own tokens as another way to pay fees to support token. In addition to it, different strategies are used to create a hype like decrease in supply etc.
But if an exchange goes through a hard period of time and shuts downs then ultimately that token will come to its end because there is no community other than that exchange supporting the token simply because it has no usage outside the exchange.
According to me exchanges should promote the usage of their coins/tokens outside the exchange to build a community in support of it. If your community consists of huge individual entities who believe you then a great community can be formed. Otherwise lack of applications would lead these things to disaster.

The backbone of every exchange projects is still on how capable the team are, not all exchange tokens will be good for holding, you have to find out how determined the team are before giving a try, every exchanges are good but team can have bad plan

itsv

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The OP made a valid point post of the exchange coins are limited to some particular exchange and mostly used for trading fees. But in case of binance it's different as they are working on smart chain with features pretty much similar to ethereum. As ethereum is moving to POS similarly BNB will be used for staking in the smart chain

copoyes

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when there is an exchange that makes its own tokens it is also good that in developing it must be promoted or cooperate with other exchanges so that their tokens are widely known and not in a single market, as well as attracting new investors, because their wealth is like tokens or coins that are otherwise if it is not widely marketed then over time it will fall

Alert31

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Trident Protocol | Simple «buy-hold-earn» system!

I think those exchange using their own token as an strategy to increase the demand of their exchange are also using it to promote and upgrade trading pairs. It means their own token has a usage but only inside trading exchange. And if their own tokens has a value,then the demand on their exchange will surely increase and it will affect with other tokens base on the trading pairs with their own token.

timmmers

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Do not fall into an idea that exchange tokens will bring you profit. They claim that you will get a passive income when you hold the tokens, but never forget about the fact that a lot of exchanges has very small trading volume, so they do not earn enough money and that means very weak reward.

shadowdio

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Zawardo

Yep that would be a big collapse if the exchanges are going to close because of hacking incident or turn to scam, a big lose for you. If you really like to invest in exchange coins you better pickw the trusted exchange like binance.

Kvalentine

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I can still invest money on Hotbit, huobi and few others, what you have to do is make sure the exchange token you are going to invest money on has good and real volume on their exchange, the chances of surviving in future is higher compared to exchange with fake Volumes

SacriFries11

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In some case, exchange tokens are very useful to their exchange site itself. It helps promote their project and create different uses. If the exchange goes down, the value of coin down first but in the beginning its very important. I think if exchange tokens become more flexible even outside the exchange itself, it will help the project in the future needs. Investors will surely trust the exchange and many users will immediately trade in it.

FireBallex

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Quote from: HammadAli on October 22, 2019, 12:39:41 AM

I have seen many exchanges have launched their own token like Binance with BNB, Idex with IDEX, Hotbit with HTB, Yobit with YO etc. where exchanges use their own tokens as another way to pay fees to support token. In addition to it, different strategies are used to create a hype like decrease in supply etc.
But if an exchange goes through a hard period of time and shuts downs then ultimately that token will come to its end because there is no community other than that exchange supporting the token simply because it has no usage outside the exchange.
According to me exchanges should promote the usage of their coins/tokens outside the exchange to build a community in support of it. If your community consists of huge individual entities who believe you then a great community can be formed. Otherwise lack of applications would lead these things to disaster.

Not gonna work, exchange tokens are created to serve the exchange platform not work outside the platform, if that happens then it's no more an exchange token, for example BNB token cant be used outside the exchange and the team came up with BUSD which is a stable coin and the team get this stable coin implemented into few payment services e.g Alchemy pay

reality18

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Earn more with Earn Network

It's of no wonder Binance coin (BNB) has received many vouches under the thread. Aside from being just an exchange coin. BNB is among the top notch coins on the market now with great potentials. Trade and use your BNB as transaction fees on Binance and earn 40% discount. This is good use case.

Jennygirl

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The issue of exchange tokens is that they find relevance majorly from their novel exchange and this could imply that ones the exchange is having issues, the tokens begin to loose credibility. I personally won't invest in an exchange tokens because of the higher risk it could bring. The only exchange token I consider to be worth the risk is BNB.

Chukwunonso

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Quote from: rmhuntley on October 22, 2019, 12:58:37 AM

I don't think that the tokens from some of the exchanges you mentioned will die. An example is BNB, besides being used on the binance market as a trading pair, BNB is also traded in many markets. Don't you think they now have a strong community in the market ?

BINANCE is one of the biggest cryptocurrency exchange, lately and they have their token BNB traded on several exchanges. I personally don't see the binance token coming to nil due to the structures which the exchange has built over time. I only hope that other exchanges can imitate the binance exchange tokens and make their tokens relevant in the cryptocurrency space rather than being only relevant in the exchange.

Alex3231

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CLEARSIGHT- THE #1 BLOCKCHAIN JOB PLATFORM

Meximum exchange token are great. BNB, KCS, Yobit, Idex and HTB are great. These coin great for long term investment. There team are active.

Topic: Exchanges Tokens - page 6. (Read 33510 times)