The best crypto exchange tokens are offered by exchanges with amazing incentives for holders. These exchanges provide users a three-in-one opportunity to earn returns over investment and profit via trading while paying lower fees for transactions.
When Bitcoin was created over ten years ago, most crypto exchanges that sprung up operated as a platform to facilitate buying and selling off coins only. However, fast-forward to today, several crypto exchanges not only provide a platform for trading crypto but also offer their exchange tokens with different exclusive perks.
Exchanges usually offer a native token primarily to increase their user base and promote ease of transacting with other coins and tokens. This article explores what exchange-based are and what they are designed for. After which, we’ll introduce you to different global crypto exchange tokens. Let’s get into it!
Table of contents
- What are Exchange Based Tokens?
- Uses of Exchange-Based Tokens
- Best Exchange Based Tokens
- How to Buy Exchange Tokens
- The Future of Exchange Tokens
What are Exchange Based Tokens?
Exchange-based tokens are digital assets created by crypto exchanges. These tokens differ from regular cryptocurrencies because they are peculiar to a certain exchange and sustain a level of credibility when they are built by a reputable exchange.
Exchange-based tokens represent a form of innovation in the crypto space that provides incentives to users and a fundamental fundraising strategy for the exchanges. This leads to a win-win situation for the users and crypto trading platforms.
Uses of Exchange-Based Tokens
Exchange-based tokens have the potential to increase in value depending on how much people transact with them. They are different from stable coins and other tokens and offer more utility.
Crypto exchanges usually have a primary purpose for launching an exchange token. There are four basic uses that crypto exchanges consider as the primary objective for launching a native token and they include the following.
Liquidity is a term used to quantify the number of trading activities that allows crypto assets to be converted into cash without altering the market price.
When an exchange has low liquidity, it becomes difficult to buy or sell on the platform because there are not enough “buyers and sellers” to receive or provide the desired crypto or fiat money. Hence, exchanges aim to provide enough liquidity on their platform to facilitate smoother and quicker trading processes.
To meet their objective, one of the strategies they use to increase trading activities and ultimately higher liquidity is by generating an exchange-based token. These tokens are usually easily converted to other coins with lower transaction fees, thus becoming a preferable option among traders.
Discount on Fees
When you trade on an exchange, be it a decentralized (DEX) or a centralized (CEX) one, you are required to pay a marginal fee to execute the order. Crypto exchanges provide fee concessions on trading fees for users when they execute buy or sell orders using the exchange-based token.
If the exchange has a blockchain, they also offer discounts on withdrawals using the network service, like Binance’s Smart Chain. These fee concessions are a major appeal to users to transact more with the token—consequently, the demand for the token increases leading to a boost in the token’s value.
Another feature of exchange tokens is credibility. When crypto exchanges launch an exchange token, they must have fulfilled certain regulatory requirements. They also provide insurance and security measures to protect their user’s investments. As such, they can build trust between the users and government regulators.
A good example of an exchange-based token with multi-party trust is the Gemini Dollar, a token that provides users with token stability tied to the US dollar. Aside from being licensed by New York’s Finance Department, it’s also supported by the US regulatory body.
Different crypto exchanges offer exchange tokens for several purposes, and sometimes the primary purpose is beyond increasing their customer base or providing incentives to users.
Some exchanges release exchange tokens primarily to act as a governance tool for the community. Community-driven exchanges like decentralized exchanges commonly use this feature.
They are used to accredit users for decision-making about the future developments of the exchange. Any user that owns some of the exchange tokens is given voting rights to support any proposal of choice in the community. These users are also open to exclusive perks and privileges.
Best Exchange Based Tokens
We’ve selected the top four exchange tokens out of several exchange tokens available in the crypto market. Each exchange token has a unique feature that gives them an edge over other conventional tokens. Let’s explore each!
Cronos (CRO), formerly called crypto.com coin, is the native coin of the Cronos chain. The CRO company aims to boost blockchain adoption significantly in the global economy.
Hence, they have several discounts to encourage users to trade with their exchange tokens. For example, traders enjoy an 8% cashback when using their debit card to execute buy orders.
The exchange supports more than 250 currencies and offers trading discount fees of 0.4% and lower for users that hold Cronos coins. Other tokens are built on the Cronos chain and provide liquidity pools for holders to stake and earn from their tokens.
The token price is currently at $0.19, with a market price of 4 billion dollars scooping 0.38% of the crypto market.
Binance Coin (BNB)
Binance offers low trading and withdrawal fees for users that trade with BNB. They charge as low as 0.02% for trading and as high as 13% APR for staking Binance coin (BNB).
The exchange currently supports more than 350 cryptocurrencies with diverse trading and earning options for users across several countries; however, it is unavailable in the US.
Today, BNB is worth $318 with a whopping market cap of 52 billion dollars. It ranks fifth on Coin market cap while capturing 4% of the entire crypto market.
Gemini Dollar (GUSD)
As the first stable coin that is fully regulated, Gemini Dollar (GUSD) offers users a secure way to hedge against market volatility. The exchange token was licensed by the New York Department of financial services, and it is hosted on Gemini, a centralized exchange.
Gemini Dollar has the same value as the US dollar and is expected to maintain the one dollar despite the market performance. Unlike other exchange tokens readily available on hundreds of other exchanges, GUSD is currently listed on 41 exchanges available in the US and beyond.
At the moment, Gemini Dollar maintains its peg price of $1 with a market capitalization of over 250 million dollars, gradually increasing in market dominance.
Uniswap (UNI) is the governance token of the largest decentralized exchange, Uniswap. It uses incentives to encourage trading activities on the exchange, thus providing liquidity for trading activities to occur smoothly.
The exchange charges between 0.01-1% transaction fees for swapping one coin or token for another. In addition, users can earn profits by staking Uniswap and another token in a liquidity pool.
Uniswap (UNI) is currently $5.5 with a total market cap of over 125 million dollars, ranking as the largest decentralized exchange-based token.
NOW Token is a native cryptocurrency developed by the instant exchange service ChangeNOW. This is an asset inuse within the NOW product system – mainly as a means of payment for asset listing fees, also providing its users with opportunities for business promotion and service discounts. NOW represents a convenient service adjustment making it easier and more profitable to use ChangeNOW products.
ChangeNOW Token was issued in 2018, is traded $0.07129 in May’22 and is accepted both in ERC-20 and BEP-2 protocols. It also offers a staking program with up to 25% ROI of annual profit promised.
How to Buy Exchange Tokens
You can buy crypto exchange coins directly from the exchange after the coin has been launched. However, most exchanges usually host an initial exchange offering (IEO) where investors can buy the tokens at a low price before the price shoots higher.
Other crypto exchanges launch their exchange-based token in the form of airdrops, a marketing strategy used to promote the token. Airdrops are campaigns developed by crypto creators in which they deliver some tokens into certain wallet addresses in a bid to promote the awareness of a new cryptocurrency.
Users that win airdrops get some number of the exchange tokens deposited in their wallet, after which they can be traded on the exchange like other regular cryptocurrencies. Generally, aside from participating in an exchange’s IEO or airdrop campaign, you can buy exchange tokens directly from the exchange like any other coin.
Exchange Tokens On Swapzone
Still, the easiest way to get most of exchange-based tokens it to swap you crypto assets on Swapzone directly to the token you need. As an instant crypto exchange it does not require any registration and does not have any restrictions so you can conduct your transaction fast and safe anywhere any time.
Swapping any crypto for exchange-based tokens through Swapzone is extremely easy and ensures that you pay minimal transaction fees by comparing 15+ exchange providers. Follow these simple steps to buy your tokens:
- Visit the Swapzone main page
- Enter the total amount of crypto you are going to exchange.
- Choose the best swap offer.
- Click on the Exchange button.
- Enter your wallet address to receive crypto to your wallet.
- Send your deposit to the generated address.
- Wait for your swap to be done.
- Finally, receive your crypto!
The Future of Exchange Tokens
Exchange tokens have become a popular feature of crypto exchanges, and upcoming exchanges are expected to launch a native token in the coming years.
The incentives and properties of exchange-based tokens will improve and evolve based on the needs of users and the regulation of the exchanges. The governance features of these tokens will also help the community to make decisions to improve the operation of the exchange.
One common feature among exchanges with native tokens is the investment options they offer to exchange token holders. Most provide appealing APR values to users for holding exchange tokens. And this investment ROI is predicted to increase over time to promote usability and liquidity in the exchanges.
In conclusion, if you’re looking for tokens supported by exchanges with significant discounts on fees and other exclusive privileges. Then we recommend you consider investing in the exchange tokens highlighted in this article after performing your research.