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Home Blog exchange tokens
Article by Yunis
7 September 2022 (Updated 28 September 2022)

Exchange platforms prefer to create a native token that can be used as a loyalty point system. Using and holding exchange tokens have some benefits like reduced trading fees and better rates.

Exchange tokens, also known as utility tokens, are designed to create an interior loyalty-based point system on the platforms. Holding and using those tokens have benefits.
Exchange Tokens logo
  • Some platforms, including Coinbase, LEDN, BlockFi, and YouHodler, don't have a utility token.
  • NEXO recently announced a $100 M buyback program to support its platform's token.
  • Crypto.com offers crypto credit cards against CRO token collaterals.
  • Binance exchange buys and burns BNB coins quarterly.

What are Exchange Tokens?

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.

Platforms without native token

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:

  Binance Crypto.com AAVE Huobi FTX NEXO Coinbase
BNB ✔️ ✔️ ✔️ ✔️ ✔️
CRO ✔️ ✔️ ✔️ ✔️
AAVE ✔️ ✔️ ✔️ ✔️ ✔️ ✔️ ✔️
HT ✔️ ✔️ ✔️ ✔️
FTT ✔️ ✔️ ✔️ ✔️ ✔️
NEXO ✔️ ✔️ ✔️ ✔️ ✔️

 

NEXO Token

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 Token

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.

CRO token

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

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

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. 

FTT token

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.

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