All About Exchange Tokens

There are all sorts of coins and tokens in crypto these days. There are store of value cryptocurrencies like Bitcoin. We have Development platforms like Ethereum. We even have stablecoins, such as USDT, that are backed by assets such as gold, silver, and fiat currencies. Amongst this cornucopia of different crypto projects, we also have what is known as exchange tokens. In this piece, we will take a look at this unique and fast-growing sector of cryptocurrencies!

What are Exchange Coins/Tokens

Simply put, exchange coins and tokens are digital assets created by cryptocurrency exchanges and companies. These assets primarily serve as utility tokens within exchanges and other similar projects. Even though the projects which these tokens represent are primarily based on both the store of value and development cryptocurrencies that we are more familiar with, exchange tokens have evolved into an asset class in and of themselves.

Why are Exchange Coins/Tokens Valuable

Since each of these cryptocurrency assets are a direct reflection of the exchanges and crypto companies that they represent, they hold an intrinsic value from the moment they are created. Their market cap is directly correlated with the number of active users that are using their respective exchanges and projects. As these assets are used for a multitude of purposes within the projects that they represent, their market cap increases whenever their backing projects gain more users.

How are Exchange Coins/Tokens Used

Most often, this particular asset class is most often used for the transfer of value within exchanges and other cryptocurrency companies, although they are also commonly used for staking purposes. Crypto.com Coin (CRO) is a great example of a coin that checks both boxes. Crypto.com Coin is integral to nearly every aspect of the Crypto.com network, as users are required to stake CRO in order to apply for Crypto.com metal visa debit cards. CRO is also what users receive as a means of reward from using Crypto.com products.

Other Exchange Coin/Token Benefits

Although each of these assets varies from project to project, one of the commonalities between many of these exchange assets is how they are used to reward users for staking various other cryptocurrencies within their platforms. Under many occasions Exchange tokens such as KuCoin’s KCS and Binance’s BNB have been rewarded to users in various ways for staking or holding certain coins and tokens within specific junctures. Many exchanges will often reward users for participating in a variety of different programs.

Conclusion

Exchange tokens are one of the most important asset classes which exists within cryptocurrency. Some exchange tokens have even made it into the top 10 large cap cryptocurrencies, such as the ones which Killer Whale Large Cap Sector Strategy thrives on! Be sure to check out the Killer Whale Products Page to find out which Killer Whale Signals and Strategies are right for you!

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