Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Kizozo on March 04, 2024, 04:08:48 PM
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Going through the Internet earlier this morning, I came across a post discussing the growth rate of exchange tokens in the month of February.
I draw a conclusion that the growth rate of a particular exchange determines the growth of their native token which I have the believe that am not far from being correct even though I may not be completely right.
Am curious to hear you guys thought on this and also wanna know if you guys hold the native token of the exchanges you use.
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I do believe that the cryptocurrency space, in general, is growing. This is because of the ETF and the old money that people have are getting exposed with cryptocurrencies.
OP, You are not making sense of this phrase
...which I have the believe that am not far from being correct even though I may not be completely right....
Just speak your mind and what you think, it's not the end of the world if you made a wrong prediction, unless you are gambling your life savings lol. I do hold some of my exchanges tokens because of the fees that I'm saving up and the part where I can trade continuously with my bot is even better.
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Going through the Internet earlier this morning, I came across a post discussing the growth rate of exchange tokens in the month of February.
I draw a conclusion that the growth rate of a particular exchange determines the growth of their native token which I have the believe that am not far from being correct even though I may not be completely right.
Am curious to hear you guys thought on this and also wanna know if you guys hold the native token of the exchanges you use.
You might be talking about tokens like Binance's BNB, HTX's HT, GateIO's GT and even FTX's FTT ^^
I think the development of CEX is one of the bases to support its token price. Usually CEX's token is used to reduce trading fees for traders. As trading volume increases, traders will use more CEX's tokens, creating buying pressure and pushing token prices up. In addition, Binance also uses part of the profits to burn BNB tokens, helping to create more scarcity.
Some CEX tokens like BNB and HT have more value in the BNB chain and Heco chain ecosystems: paying transaction fees, Staking to POS...
I often use Binance, and I wish I hadn't used BNB to pay trading fees in 2018-2020 to get 25% fee discount. It would be better if I held all the BNB for now to profit from the strong price increase of BNB ::)
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It is natural that the growth of the exchange token is linked to the performance of the exchange. The larger the exchange is and the more users it has, the more the exchange token will be used, whether through paying trading fees or some other services such as staking or farming in which the exchange token must be owned.
All of these things contribute to the growth of the exchange token significantly when the exchange grows, but in general, if you ask me about CEX tokens, I personally do not find them reliable, they are often manipulated, and they can collapse at any time, so I do not advise you to invest in them in the long term.
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I draw a conclusion that the growth rate of a particular exchange determines the growth of their native token which I have the believe that am not far from being correct even though I may not be completely right.
Yes, this is quite true most especially with BNB which reflects the kind of strong growth and solid revenues generated by Binance, though this asset is now representing the whole Binance ecosystem and not just the exchange side. When an exchange is experiencing a good growth pattern, there will be more transactions conducted with the use of its own native token hence we can say that the demand is high and when the demand is high the price can certainly increase likewise. Actually, this is just a basic thing anywhere in business and this is happening in the world of cryptocurrency. I am not an investor of any exchange token but am sure there can be a big profit that can be made here...most especially the top 50 exchange tokens (https://coinranking.com/coins/exchange) in this list.
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Exchange do have a strong utility value. They aid in change, swap and trading of fiat and crypto currency which further outlines their various business goals to convince investors to investing in them. So in other to get more value I believe the reasons why they launched the exchange token. This token or coin also stands to represent the exchange in the market. However the growth of the exchange token represents or shows how successful the exchange is because it is a reflection of what the exchange does and it speaks for the exchange wherever the exchange is mentioned..
Holding a native exchange token is not a bad idea, if one sees it worth the investment, then one can hold it but while holding it, you should also be very much informed about the exchange so that you do not wake up one morning and discovered that the exchange token crashed drastically as a result of some an occurrence; maybe a hack, or government actions against them etc.
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I do believe that the cryptocurrency space, in general, is growing. This is because of the ETF and the old money that people have are getting exposed with cryptocurrencies.
OP, You are not making sense of this phrase
...which I have the believe that am not far from being correct even though I may not be completely right....
Just speak your mind and what you think, it's not the end of the world if you made a wrong prediction, unless you are gambling your life savings lol. I do hold some of my exchanges tokens because of the fees that I'm saving up and the part where I can trade continuously with my bot is even better.
Hahaha that highlighted part is funny though. Anyways, yeah I also did the same thing with Binance I converted all small balances into BNB to be used mainly for fees but I don't personally hodl exchange tokens on my personal wallets because I only have Bitcoins on it and tons of shitcoins from my bounty hunting activities way back 2017.
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I draw a conclusion that the growth rate of a particular exchange determines the growth of their native token which I have the believe that am not far from being correct even though I may not be completely right.
I also agree with you on well-known exchanges, their coins have good value, although popularity is the main key, whether the exchange is busy or not,
but the plus point of bNb is that they have their own network and support the development of their main token
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Going through the Internet earlier this morning, I came across a post discussing the growth rate of exchange tokens in the month of February.
I draw a conclusion that the growth rate of a particular exchange determines the growth of their native token which I have the believe that am not far from being correct even though I may not be completely right.
Am curious to hear you guys thought on this and also wanna know if you guys hold the native token of the exchanges you use.
Of course, it do reflex the growth of that exchanges when we look at their native token.
However, not exchanges in the 2018 wave that introduces their native token were successful though. Obviously BNB is the top of the list. And I remember back when I invested and thought that it will make a good run on top.
Unfortunately, I was disappointed by the results, and it just shows that only the prime movers like Bitcoin and in this case exchange token, BNB were successful.
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Gate coin and Kucoin coin have been talked about for a long time, I think it's just a good step for CEX exchange and it's going in the right direction. A lot of profit can be made from it in the short term, which is almost guaranteed, so you should try it in the long term. Futures trading is one of the nice methods and easy to use.