Exchange tokens are utility tokens that are used on crypto exchange and trade platforms. Platforms prefer to run a native blockchain network to create an internal payment system that allows interoperability between different blockchain networks. Utility tokens can be defined as a blockchain-powered loyalty point system. Platform members benefit from holding and using utility tokens. Reduced transaction fees, voting on important decisions, and privileged allocation on new coin offerings.
Not all platforms have a native blockchain network or utility token. Coinbase, LEDN, BlockFi, and YouHodler don’t have a native utility token on the platforms. Here are some examples of exchange tokens and coins:
NEXO is a London-based cryptocurrency Lending & Savings and trading platform. The company claims to be the leading regulated digital assets institution. Nexo, as an exchange platform, showed strength during the turbulent bear market and never halted withdrawals or paused operations.
Nexo tokens are widely accepted and listed on many major exchanges. The company recently announced a second buyback program to support its platform’s token. You can trade other platforms’ exchange tokens, such as FTT and HT, on NEXO.
AAVE is one of the leading decentralized lending protocols. Almost all crypto exchanges allow AAVE token trades on their platforms. AAVE is one of the biggest decentralized protocols, but there have been negative experiences with the platform. Flash loans are a new type of crypto instrument that AAVE offered first. Hackers have exploited this feature before, but the platform still has strong support and many users all around the world.
Crypto.com is a crypto Lending & Savings, and trading platform founded in 2016. The company has a wide selection of coins and tokens on the platform, along with crypto card offers. Crypto.com offers crypto credit cards that can be used on daily purchases. Users must hold and stake a specific amount of selected cryptocurrencies. If users choose CRO tokens, the required amount will be lower.
BNB is among the top three cryptocurrencies by market cap after Bitcoin and Ethereum. BNB was initially created as an ERC20 token on Binance and then implemented its own blockchain network. Binance is a leading global cryptocurrency exchange and trade platform. Every quarter, it buys back some BNB coins and burns them. Users can convert their small amount of cryptocurrencies to BNB coins on the Binance app.
HT token is the cryptocurrency exchange Huobi Global’s native token built on the Ethereum blockchain with ERC-20 standards. Using and holding HT tokens has benefits such as discounted trading fees, participating in decisions on the platform’s future, and accessing new coin offerings. The better platform is doing as a business, the higher the HT price is expected to go. Huobi exchange has the most diversified coin selection and supports many cryptocurrencies.
FTX is a cryptocurrency derivatives Exchange platform where traders can open leveraged positions. FTT is the native token on the platform and serves as a utility token. Using FTT gives reduced fee advantages to traders. FTX platform has shown strength during the sell-offs and supported other troubled exchanges.