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Are Exchange Tokens a Good Investment?

With over 6,200 coins and counting, the cryptocurrency market has a digital asset for nearly every purpose.

You can use a coin to run DApps, transact funds more privately, or even to power DeFi and blockchain gaming solutions.

With the evolution of the cryptocurrency industry, exchange tokens have also appeared on the market, providing additional utility for those looking to convert fiat and digital assets.

But what makes exchange tokens a good investment, if at all?

What Are Exchange Tokens?

Since the birth of Bitcoin, cryptocurrency exchanges have played an integral role in the industry, serving as a bridge between traditional finance / the fiat world and the digital asset economy.

As the industry matured, crypto exchanges have issued their native tokens to power their platforms and provide additional features to their users.

The functionality exchange tokens provide can range from increasing liquidity, incentivizing traders with fee discounts, and even offering features unrelated to trading – such as granting (early) access to fundraising activities or giving voting rights to coin holders.

With so many use-cases, cryptocurrency exchanges can leverage their native tokens to provide a better service to their customers while sparking innovation within the digital asset industry.

The Successful History of Crypto Exchange Tokens

Looking at the native coins of different service providers, we can safely say that exchange tokens are among the industry’s most successful digital assets.

Binance emerged from 2017’s ICO boom by issuing its own exchange token (BNB), collecting $15 million from contributors at the time.

From the initial $0.10 BNB price, the cryptocurrency’s price has grown to its current $22.38, featuring the 10th largest digital asset with a $3.2 billion market capitalization.

Both the success of Binance and BNB lies in the innovation and new use-cases they provided to the cryptocurrency industry.

Apart from general functionality – such as offering trading fee discounts and increased liquidity –, Binance does regular coin burns to provide a long-term value growth to BNB holders by cutting down the digital asset’s supply.

Furthermore, holding and spending BNB allows Binance customers to invest in the coins of crypto startups on the exchange’s Initial Exchange Offering (IEO) platform, which brought great success to Binance during the golden age of IEOs.

In addition to BNB’s all-time 22,000% ROI, other cryptocurrency exchanges have followed Binance’s example, generating great returns for token holders. Some of the most successful exchange tokens include:

  • Huobi Token
  • OKB (OKEx)

AAB: An Opportunity To Grow With AAX

AAX, the institutional-grade exchange platform powered by LSEG technology, launched its native AAB exchange token in mid-April 2020.

AAB provides numerous new features for AAX users.

This ranges from trading fee discounts (up to 50%), access to professional on-platform services and tools – such as lending and borrowing products as well as trading bots and signals – to offering premium customer service and incentivizing token holders with daily AAB burns.

In addition to all that, investing in AAB allows crypto enthusiasts to grow with AAX, and, despite all the uncertainties and market turmoil, AAX has seen considerable growth in 2020.

Following the coronavirus-fueled market crash in March, spot trading volume activity on AAX Spot has surged to as high as 400% in the recent months.

We have also experienced a drastic growth on the AAX futures market.

As a result of improving our spread, collaborating with top-tier market makers to reduce our slippage as well as an increase in new registrations, futures trading volumes on AAX have increased by a record 4,500% rate in late July.

Since AAB is the native token powering our exchange, and it is funded by futures fees earned by AAX, this growth is immediately reflected in the price of AAB which is up by more than 40% since July 15th, 2020.

Exchange tokens are a way to grow with the crypto exchange business. What sets AAB apart from established coins such as BNB and other high-quality platform tokens, is the fact that coin burns take place daily and that there is still potentially much growth ahead for this up-and-coming exchange.

Trade with AAX

AAX is the world’s first digital asset exchange to be powered by LSEG Technology. Offering OTC, spot, and futures, it provides a highly secure, deeply liquid and ultra-low latency trading environment; and a meeting point between crypto and global finance. 

Open an account with AAX, or download the app, and experience the next generation crypto exchange.

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