The Rise of Exchange Tokens: Why Cryptonity’s Success is Inevitable
Exchange tokens started becoming the talk of the town in the mid-2017 as soon as they emerged. The purpose was to give some advantages to the users of these tokens and they were identified as utility tokens. For instance, these tokens can be a way to reward a person who is helping create liquidity in the exchange. More applications of the tokens included lowering of trading fees or give some governance rights to the exchange users. The features varied depending upon the exchange.
Some Great Examples of Exchange Token Success
The attention to exchange tokens increased when they starting achieving success over the years. One such great example is BNB, the exchange token of Binance. The price of BNB has soared over the last few months and is currently trading at a great price. As suggested by the BNB price chart, the token has performed exceptionally and achieved 10 times ROI for the holders. The ROI from the ICO price has increased exponentially to 105 times the original price in just a year.
Following the footsteps of BNB, Huobi Token (HT) is showing a 100 percent increase in the current year. Data suggests that the exchange coins have gained significantly this year and outperformed BTC, which is the usual market trendsetter. While BNB remains the best performer, Kucoin Shares (KCS) has reported a growth of 69 percent.
Understanding the Exchange Token Mechanics
Exchange tokens are designed to benefit their holders in more than one ways. However, the most common advantage of holding tokens is trading fees discount. All the tokens have their own way of offering discounts. While BNB provides its users with a yearly-declining discount, Huobi offers a tiered discount on trading fees for HT. KuCoin exchange, on the other hand, gives 50% of the exchange daily trading fees to the KCS holders as a dividend.
Other advantages enjoyed by the token holders include airdrops and governance rights. ET holders have a right to be involved in the exchange matters like new coin listing. Airdrops given as rewards to the token holders help in increasing liquidity of the new assets and are also useful in increasing the user base. The indirect benefits include the rise in the token price using the buyback and burn programs that decrease the number of tokens in circulation considerably.
Why
Cryptonity
is a Good Choice?
Cryptonity is all set to follow the footsteps of these successful tokens. Since it is built with a community-centric approach, it has tremendous benefits to offer to its users. Along with all the benefits the tokens generally offer, Cryptonity will give its users the following advantages:
Any user with more than 100,000 CNEX tokens can be in a direct partnership with Cryptonity and earn profits.
The top 50 CNEX token holders will share 20% of the total 50% revenue kept for the community and will enjoy a free trading account for a lifetime. They will also get confirmed allocation in the future IEO’s on the Kickstarter platform.
CNEX token prices will be increased using buyback and burn programs until the total supply of tokens is reduced to 200 million.
They will have a say in whether or not the exchange should support fork.
Masternodes Pool and POS Wallets will give added rewards.
The Bottom Line
In sum, Cryptonity has more features than any successful token. Our prediction is that its price will increase exponentially once it is out. There are chances that it might give a hard competition to the existing dominant tokens in the market.