Exchange tokens have not been new in the world of cryptocurrencies for a long time. Such assets are native to individual cryptocurrency exchanges and are introduced to provide certain benefits that help facilitate trading activities on the respective centralized and decentralized platforms.
According to crypto data aggregator CoinGecko, which tracks nearly 200 of them , the total market capitalization of assets native to the exchanges is about $77 billion as of August 2, 2022.
So, for those who are interested in what exchange tokens are (despite the fact that they have now to some extent become an integral part of the portfolio of many crypto traders) , we bring to your attention three main provisions regarding their existence:
Since exchanges follow a competitive business model where everyone always strives to maintain user loyalty, exchanges have introduced their tokens to easily manage their own exchange activities. Thus, the first major use case for these tokens is to service the ecosystem of exchanges to pay for services and, with strong fundamentals , to insure against market downtrends. These tokens are designed to provide various bonuses and benefits for using the exchange’s tools and products — a kind of incentive for its users — and its own tokens provide additional value to those who own them in the form of privileges and discounts on trading fees.
Crypto exchanges are a form of business that facilitates the trading (buying and selling) of crypto assets. They achieve this basic proposition by combining the base currency with the quote currency in their listings. Exchanges also store digital assets for their users, which has prompted exchange operators to develop several products in the process, including ones that could help leverage idle assets while allowing owners to generate passive income (like staking ). However, to facilitate operations in the face of increased activity on exchanges, given that they will not have strong control over third-party tokens listed on their platforms, proprietary exchange tokens help reduce the burden of receiving rewards and other requests.
Looking at it from another perspective, exchange tokens offer their trading platforms a convenient way to increase liquidity. Exchanges must be liquid so that a digital asset can be bought or sold quickly. This ability allows exchanges, especially those that register huge trading volumes, to operate without interruption, providing users with a constant flow of transactions. Liquidity is related to reliability. Exchange users want to rely on a trading platform that has the infrastructure to meet their liquidity needs at all times with uninterrupted operation, including during extreme peaks of trading activity.
🟣 Exchange tokens with low capitalization, such as $PROB
There are various exchange tokens, including those with low capitalization. Low limits are those that fall below $1 billion in total value. They have what it takes to fluctuate in price dynamics at any time, and with the potential to increase in value in a very short period of time.
ProBit Global’s $PROB falls into this category. As you may know, the exchange supports new blockchain projects on their way to conquer the world and remains the main gateway for launching altcoins with good potential to attract investors, gain publicity and relevance. ProBit Global has until now offered incentives using its ecosystem’s native asset, $PROB .
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