What are the benefits of holding an exchange-based token?
Exchange-based tokens began to come into prominence around mid-2017. Most of them are classified as utility tokens, aiming to give more benefit to the holders, and issued by the exchanges themselves. These are one of the most useful digital assets in vogue.
Exchange-based token offer holders a discount on trading fees and other benefits. This makes them nothing like equity claims on exchange revenue, which has been pointed out by many analysts, irrespective of any buyback mechanism employed.
This makes them like the utility tokens or air miles issued in the 2017 and early 2018 coin offering and some investors in these tokens embrace that narrative.
Exchange tokens have slowly moved away from their initial role, becoming more like equity in companies trying to find ways to provide more value to token holders. But what makes an exchange token a good investment?
In this article we are talking about the benefits of holding an exchange-based token, but before that we think you would like to know about some popular exchange-based tokens.
Popular Exchange-based tokens
Here are a few popular Exchange-based tokens and their basic details. We are not making the list longer because the top three are enough to show you the benefits these coins offer to its holders or users.
BNB (Binance Token)
The BNB can be used to trade and pay fees on the Binance cryptocurrency exchange. BNB can be said to be the best performer in recent times as it has given a great ROI to its investors.
Binance Coin users receive a discount on transaction fees on Binance Exchange as an incentive. BNB can also be exchanged or traded for other cryptocurrencies such as Bitcoin.
1inch
1inch tokens are used by all holders to share and participate in the governance of the 1 inch protocol. It is a decentralized exchange (DEX) aggregator that combines multiple DEXs into one platform. This allows 1-inch users to find the most efficient swapping routes on all platforms.
HT(Huobi Token)
Huobi Token, or HT, is a token issued by Huobi, Huobi token is the fuel for the Huobi system. one of the world’s leading cryptocurrency exchanges based in Singapore.
It is currently an ERC20 based token, but with the launch of the Huobi chain it will be moved to its own chain.
It offers Low trade and withdrawal fees, access from Anywhere, Secure Storage, Credit Card Payments, 5x Leverage.
KuCoin Shares (KCS)
Founded by Micheal Gan in May 2017, KuCoin Share provides dividends to users holding their exchange tokens.
The token is issued by KuCoin, a Hong Kong-based mega exchange. On a daily basis, KCS holders will receive a portion of the 50% trading fee according to the amount of the KCS they hold, known as the KuCoin bonus. In recent times KCS has given excellent returns to its investors.
Benefits of holding an exchange-based token
One thing that is common in all three exchange based currencies is that they are well trusted. Along with it they have great shares and have been giving a great ROI to their investors.
But there are more benefits we should know about, and here they are:
- Exponential Growth
- Users earn regular passive income by holding these tokens on their exchange
- More profitable staking products
- Regular Bonus
- Good Risk Reward
- Long-term profit and business success
- Holding a bunch of token can lower transaction fees
- Used in their Spotlight
- Integration with several known platforms and apps (Hybrid Architecture)
- More trading options
- Cross-chain Trading
- Referral Program
- Low trade and withdrawal fees.
- Easy access from Anywhere
Looking at some native coins from various service providers, we can safely say that exchange tokens are among the most successful digital assets in the industry. People think that exchange tokens generally require a strong investment but it is not all true.
However, they are almost guaranteed to have higher ROI as long as the exchange remains reliable and relevant. So basically, exchange tokens are only as valuable as the exchanges they are linked to.
However, If you are searching for a cryptocurrency with higher ROI and lower price then we have a suggestion- Try PKoin. Pkoin is a Stable asset-backed cryptocurrency launched by Power Corp.
Power Corp is a company that is innovating the finance 3.0 approach utilizing blockchain technology, cryptocurrency, and the DeFi system.
This comprehensive approach is creating a revolution in the traditional financial structure and process. With a solid business plan, a team of experts and by incorporating the latest technology, Powercorp is providing investors and users a great opportunity to generate great and regular passive income.
Originally published at https://www.powercorp.us on May 19, 2021.