In the still young asset class cryptocurrencies, there are thousands of new startups and companies that issue their own tokens/coins. By far the most profitable companies in the crypto space are the exchanges themselves, where these tokens/coins of the individual companies can be traded.
Since 2017, when the trading exchange Binance was the first to start doing so, many exchanges have issued their own token/coin, practically all of which have performed excellently across the board and achieved a significant increase in value.
Three theses for the popularity of exchange tokens:
1. The benefits of tokens are easy to understand and comprehend. Most often, “exchange tokens” offer owners discounts on trading fees. Every trader understands this immediately and sees the result of it directly when he makes a trade.
2. Exchanges specifically advertise their own token on their platform and promote it constantly. Hardly a purchase goes by without mentioning the advantage of owning and using their own exchange token. Statistically, a person will buy a product if it is presented to him more than 7 times, or at least this increases its probability enormously.
3. Practically every user and trader is aware that trading exchanges are very profitable. This gives him confidence in his investment and minimizes a total loss.
Everyone would like to be a part of an exchange.
The trading platform Binance, operational just since 2017, made a profit of over $800 million dollars in 2020. Crypto broker Coinbase recently announced results for its best quarter ever, generating $1.8 billion in revenue in the first quarter of 2021 alone. But as an exchange token owner, you don’t directly benefit when such huge profits are made, because these exchange tokens are not regulated and there is no right to a participation. The big profit therefore only benefits the shareholders and owners.
Now, an upcoming Liechtenstein company wants to change this by offering their isoon regulated token a tiered fee payback based on how much tokens a trader owns and holds. In addition, the company’s profit will be distributed to token holders in the form of a dividend. Thus, it will finally be possible to benefit directly from the profit of a trading exchange without being a shareholder.