Cryptocurrency analyst. Founder and editor at btcpeers.com
The year 2019 has given a whole new meaning to the cryptocurrency sphere. From Facebook announcing its own cryptocurrency project ‘Libra’ to the emergence of different IEO projects- crypto adoption is setting new levels in the world. The word cryptocurrency doesn’t seem too odd now.
Exchanges, Binance, crypto and trading. All these are related. Binance is by far the largest cryptocurrency exchange by trading volumes. Trading is an art more than a science. While there are tons of cryptocurrency ramps scattered across the globe, all of them have different objectives and offer various products for their diverse clients.
For now, even crypto exchanges have upped their games. Exchanges have started to issue their native tokens, either as a medium to raise funds or to build and grow its user base.
The most liquid and valuable of them all is BNB, the native currency of the Binance exchange. Initially an ERC-20 token, BNB was used to raise funds for the actualization of Changpeng Zhao’s dream of building a reliable and an all-inclusive exchange.
BNB turbocharged the exchange’s global dominance, launching operations in the restrictive US, and wading into the derivative markets via Binance JEX.
In this article, we are going to dive into some of these exchanges that have launched their native tokens on their exchange platforms.
Binance, one of the most famous cryptocurrency exchange, is subsequently also the largest exchange by trading volume. Currently conducting its operations from Malta, the cryptocurrency exchange offers to trade in more than 150 digital currencies and has the capacity to process more than 1.4 million orders per second.
Its native token, Binance Coin (BNB), has gained immense popularity after its launch in July 2017. In fact, the tokens were sold just within 20 days, raising almost $15 million. The BNB token, like EXM, is based on Ethereum blockchain. As of September 2019, BNB is actively traded on its exchange platform and has a market cap of around $2.5 billion. The supply of the BNB cryptocurrency is limited, capped at 200 million, out of which 100 million tokens will be burnt, thereby halving its total supply.
The coin is used to pay the fees, including trading, exchange and listing, levied by the exchange. As an incentive to use BNB coin, the exchange offers benefits such as discount fees as much as 50%. The token distribution of the coin is as follows: 100 million (50%) for the ICO, 80 million (40%) to the founding team and 20 million (10%) to the Angel Investors.
Established in August 2018, Estonia’s cryptocurrency exchange Coinsbit is a fiat-crypto gateway. It offers 26 coins to purchase and over 70 pairs to trade and with a daily trading volume of $220.066.693, it is ranked 47th among the world's top exchanges.
They are looking to expand and provide more liquidity in the burgeoning space. Through their utility token, CNB, they aim to crowdfund by them in a three-stage IEO and a private sale in order to obtain resources for further development of the exchange.
IEO’s is the fastest way to crowdfund, and the faster Coinsbit receive funds, the faster they will roll out their services. Coinsbit has an MVP with over 100,000 active users supporting an array of coins including BTC, ETH, LTC, BCH, BTG, LTC, ETC, TUSD.
Trading using CNB means discounts, and further demand-and value, since there is a token buy-back program a year after the IEO. That is further helped by a slow CNB defrosting of purchased tokens. CNB, like BNB or Huobi Global Token (HT), will be used for exchange services when the platform will be functioning at full-throttle.
Of the 1.5 billion CNB tokens, Coinsbit will sell 500 million of them during the IEO-unsold coins will be burnt, and a further 400 million will be airdropped to registered participants subject to the purchase of CNB tokens. 100 million will be distributed through a referral program where commissions are up to 5%. The rest, 33% or 500 million CNB tokens, has been set aside as a reserve fund.
Coinsbit has successfully conducted three IEO’s, meaning that all three projects have reached their soft cap.
Another exchange that is joining the league of their own IEO tokens is the EXMO Exchange - the largest utility token in Eastern Europe. Founded in 2013, this exchange has over 40,000 active traders and 1.6 million registered users in its bag. EXMO, with thousands of daily visitors, has an average monthly trading volume of $1.5 billion.
The exchange has launched its own utility EXM token in order to raise capital for the functioning and development of the exchange, through crowdfunding. The EXM token is based on the popular blockchain Ethereum and uses the standard ERC-20 as its interface. Hence, it is compatible with most of the cryptocurrency exchanges as well as wallets, using the Ethereum blockchain.
A series of incentives have been provided by the platform in an effort to stimulate the active use of the EXM token. Some of the benefits the users of EXMO coin enjoy are lower transaction fees up to 50%, copying the portfolios and investments of successful traders of the EXMO platform along with increased referral and affiliate payouts.
As per the EXMO coin whitepaper, the token sale distribution of EXM coin will include one private round and three public rounds. The 3 public rounds of the EXM token are to be held as an Initial Exchange Offering (IEO) on its popular EXMO exchange platform. The public rounds stage 1 and stage 2 were successfully completed in August and September of 2019 respectively. The third public round of EXM is to be held in October 2019.
Established in the Year 2013, Huobi Global is a centralized cryptocurrency exchange established with the aim to revolutionize the global financial system. At present, the exchange extends its financial services in more than 130 countries. At one point in time, Huobi was the world’s biggest bitcoin exchange by trading volume.
In early 2018, the exchange rolled out its native token known as Huobi Token (HT), following the footsteps of successful cryptocurrency exchange like Binance. The HT token is decentralized cryptocurrency based on Ethereum blockchain (ERC 20). The cap of HT tokens is limited at 500 million, after which no additional tokens can be produced.
The users of Huobi Token (HT) enjoy a variety of benefits including transaction VIP discounts, liquidity buybacks and early access to important events. At present, almost 300 million (60%) HT tokens are in public circulation. Out of the remaining 200 million, 20% is set aside for user rewards and platform operation and another 20% is invested for four years and constitutes team reward.
IEO’s have started gaining popularity in the crypto and blockchain sphere. The market of cryptocurrencies is also changing rapidly. While exchanges like Binance have been successful in launching their own native tokens, emerging exchanges like EXMO have already established a solid foundation. Things are taking on new turns in the cryptocurrency market and we cannot wait to see what the future in the cryptocurrency and blockchain sphere looks like.
Disclaimer: I do not have any vested interest in any of the mentioned projects. The views and opinions expressed are those of the author and is not investment advice. Do your research.