Topic: Is exchange based tokens worth for hold? - page 10. (Read 1954 times)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

It really depends if the exchange token itself has a good utility. Like for example, Echodex exchange has a ECP token.

It has an interesting use case where we can reduce trading fees if we hold some ECP tokens into it. It has an option where we can either go for the traditional ETH trading fee or the ECP fee to save more.

For me, if I consistently use this exchange and take advantage of this utility, it would be worth to hold them.

I think that any token of any exchange is not safe for investment. I don't even have to give the example that probably all exchanges have always had the same scenario of hacking or bankruptcy. It is better to find some other coin for investment, because tokens of exchanges are also altcoins.

That level of price decrease is completely normal; if you're a true investor, you must have patience and wait 

There is no absolute guarantee that they will increase in price in the future, of course we all know their popularity and strength, but they are always subject to fluctuations with the trend of bitcoin, case of FTX teach everyone a lesson to be more wary of CEX. However, I also think that buying many different types will also reduce risks and increase opportunities, at the moment it is not suitable for me to start accumulating many altcoins, it is better to observe Bitcoin movement.

Like a few of them are good to long for long term but this is to each their own. As you're saying that token's activity is the concept that investors have to look at.
Well, it's right but aside from the actual token's movement. There's the involvement of the actual exchange if they're doing good or not. You can see that for example Binance and its BNB.
Whenever there's news about Binance having trouble with SEC, the coin of it reacts and that's why it's like playing in two books. The economy of its token/coin and the exchange itself.