During the ICO boom of 2017, several exchanges jumped on the opportunity to fund themselves by issuing a digital token.
The Rise of Exchange Tokens
Most notably, leading digital asset exchange Binance launched in 2017 after conducting a successful ICO that raised $15 million through the sale of Binance Coin (BNB). Following the popularity of the Binance token sale, other exchanges – such as KuCoin, Huobi, and Cobinhood – followed suit to capitalize on the ICO boom and the popularity of exchange tokens.
Generally speaking, the majority of exchange tokens offer similar benefits, which include a reduction in exchange fees and a share in the exchange’s profits.
Moreover, they also act as a proxy of the success of the issuing exchange, which explains why Binance Coin (BNB) has been one of the most successful digital tokens since its launch.
Best Cryptocurrency Exchange Tokens
Below, you will discover the top cryptocurrency exchange tokens that you can add to your digital currency portfolio in 2020.
|Token Name||Description||Market Capitalization ($)||Price ($)||Daily Trading Volume ($)||Reputation of Exchange||Size of Community (measured by Twitter followers)||Score|
|Binance (BNB)||Binance Coin (BNB) allows Binance exchange’s users to receive discounts on trading fees, among other benefits on future platforms in development by Binance.||1,350,000,000||9.59||88,000,000||5||921,000||5|
|Huobi (HT)||The Huobi Token (HT) was launched by digital asset exchange Huobi to provide Huobi users that hold HT with discounts on trading fees. It also enables holders to vote on exchange listings.||58,000,000||1.16||8,500,000||4||86,900||4|
|KuCoin (KCS)||Similar to Binance Coin and the Huobi token, KuCoin Shares provide a discount on trading fees on the KuCoin platform as well as voting rights on new exchange listings.||40,500,000||0.45||380,000||4||324,000||4|
|Bibox (BIX)||Bibox (BIX) token holders receive a discount on trading fees as well as a share of the Bibox exchange’s net profits.||17,000,000||0.15||8,800,000||3||18,700||3|
|ETHfinex (NEC)||ETHFinex’s Nector (NEC) token enables holders to receive 50 percent of the exchange’s trading fees. Moreover, NEC holders are able to vote on new exchange listings.||17,800,000||0.21||2,000||4||28,200||2.5|
|COSS (COSS)||COSS holders receive 50 percent of the COSS exchange’s trading fees paid out on a weekly basis via a smart contract.||7,700,000||0.06||50,000||3||17,000||2.5|
|Cobinhood (COB)||Cobinhood’s exchange token COB enables holders to take part in future ICOs underwritten by Cobinhood and will provide a 50 percent off margin trading loan interest when trading on margin on the Cobinhood platform. COB holders can also pay for exchange withdrawal fees using their COB tokens.||3,100,000||0.008||15,000||4||53,900||2.5|
|CryptoBridge (BCO)||BridgeCoin (BCO) enables holders to receive 50 percent of the CryptoBridge exchange’s profits paid out on a weekly basis.||9,300,000||0.34||4,500||3||30,000||2.5|
|Lykke (LKK)||Lyyke (LKK) coins provide holders with a share in the Switzerland-based exchange Lykke.||6,700,000||0.02||2,000||4||6,100||2|
Sources: CoinMarketCap, Twitter
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