What are Crypto Exchange Tokens?
As being primary places to buy, sell and trade digital assets, cryptocurrency exchanges are the portal for many to enter the crypto world by providing user-friendly interfaces similar to traditional financial and stock brokering platforms and applications.
Crypto exchanges can offer their users hundreds of trading options alongside services such as cold storage facilities, crypto staking, alongside margin and futures trading, to name a few. In addition, they can also offer users several extra added benefits and privileges by streamlining their native exchange tokens that can be purchased, held and utilized for various purposes.
Today, there are a number of crypto exchanges offering these kinds of native exchange tokens; however, not all of them are the same. In this blog, we explore some of the most popular native crypto exchange tokens so that you can understand the benefits of such assets and why they are important.
KCS by Kucoin
KCS, which stands for KuCoin shares, is the native exchange token of the KuCoin platform and ecosystem. The exchange initially created the token to raise money to enhance its development and provide loyal users and holders with several benefits that include: trading fee discounts, voting rights, faster customer support, daily cryptocurrency dividends and the ability to trade KCS with a selection of popular crypto coins. KCS was initially launched in 2017 with a total supply of 200 million. This will be reduced to an eventual 100 million as a result of a buyback and burn scheme by KuCoin to reduce token supply and maintain value.
HT by Huobi
The HT token is the native token of the Huobi exchange giving users discounts provided by the platform’s loyalty and rewards program. HT holders can access several advantages that include cheaper transaction fees, participation and voting privileges, priority access to new coins and tokens on the Huobi platform, investor protection, and trading functionality between HT and numerous other cryptos listed on Huobi. The token was initially launched in 2018 with a limited total supply of 500 million. After its launch, 300 million coins were allocated among traders and users of the exchange, leaving Huobi with 200 million coins in reserve. Huobi also utilizes a deflationary model for the HT token supply burning 15% of its revenue worth in HT every month and using 5% to buy back and burn the team’s tokens.
FTX Token (FTT)
Launched in 2019, FTX Token (FTT) is the native exchange token of crypto derivatives trading platform FTX. The team behind the platform have tried to create a utility token that overcomes issues faced by crypto derivatives futures exchanges in order to ensure more stability and reliability in these fast-moving and more volatile markets. The FTX token has a maximum supply of 352,170,015 FTT coins and its key features include a clawback prevention mechanism to reduce the risk of socialized losses, a centralized collateral pool to enhance liquidity and a universal stablecoin settlement protocol. Users and holders of FTX can also implement leverage trades without necessarily using a margin, giving them more flexibility to trade with leverage as they wish.
HIT by HitBTC
The HIT Token is the foundation of our very own HitBTC ecosystem. It has a maximum supply of 2,000,000,000 and is designed to provide our community attractive incentives and exclusive access to our platform that offers over 800 trading pairs, 400+ spot instruments and the fastest API on the market. HIT holders can get up to 45% discount on trading fees and can also benefit from low commissions on all HIT trading pairs.
To ensure and maintain the stability of HIT, we are also operating a deflationary model where we have allocated a minimum of 20% of our monthly trading commissions to buy back HIT tokens and burn them on with the aim of eventually reducing the overall supply by half to 1bn HIT tokens.
HIT was created to provide our users with a seamless experience on HitBTC alongside exclusive benefits for our upcoming products that include using HIT as collateral for margin and futures trading, accessing higher affiliation program rebates, obtaining lower fees on futures contracts, gaining more staking rewards and taking part in the decision making of our blockchain ecosystem with governance rights on future token listings. For more information and to buy HIT click here.
Why Should Traders Use Native Exchange Tokens?
As you can see, native exchange tokens come in many forms, and within this article, we have discussed a selection of options available from some of the most popular crypto exchanges out there, including our own.
Over the last few years, native exchange tokens have become important foundations of many cryptocurrency trading platforms empowering investors and users of such platforms to benefit from a whole array of unique opportunities, privileges, and rewards. This has, in turn, given trading platforms more loyal and consistent user bases while at the same time allowing them to increase their liquidity, incentivize trading activity and create instant utility for such tokens within their ecosystems.
For our platform, launching HIT has allowed us to grow our ecosystem and also give back to our community by giving HIT holders access to cheaper transaction and trading fee options. However, this is just the beginning, and we have a number of upcoming plans for HIT that will amplify its use cases on HitBTC by providing our users with even more trading benefits and also more inclusivity within the future direction of developments on our trading platform. Stay tuned for updates about when new capabilities will be rolled out for HIT by following our blog and social media channels.
As one of the most popular cryptocurrency trading platforms in the blockchain space, with one of the most comprehensive lists of trading pairs on the market, we offer buy, sell and trading functions for all of the native exchange tokens listed in this article. All you have to do is register here, or sign in to your HitBTC account here.
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