There are several benefits that come with owning a centralized exchange token. For example, holders of such tokens enjoy discounted trading fees, receive bonus rewards, and get early access to features of the exchanges issuing the tokens. Let’s take a look at some of the top centralized exchange tokens.
Exchange Token Defined
Exchange tokens are cryptocurrencies created and issued by crypto exchanges. As mentioned, they come with multiple benefits for their holders. Besides the abovementioned advantages of holding an exchange token, holders also have the right to vote on governance proposals.
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However, it is important to understand that exchange tokens can be rendered useless when the crypto exchange issuing the asset files for bankruptcy or gets hacked. A perfect example of this scenario is the FTT token issued by the now-bankrupt exchange FTX. As of this writing, BNB is the leading centralized exchange token based on market capitalization, data on CoinGecko shows.
Best Centralized Exchange Tokens
OKB
Launched by OK Blockchain Foundation in 2018, the OKB token is native to OKT Chain and cryptocurrency exchange OKX. Holding this crypto asset in your OKX trading account gives you the opportunity to receive rewards and discounts on trading fees. Moreover, you can use your OKB tokens to vote on any proposal raised. Also, you need some OKB to pay for gas when transacting on OKT Chain.
INX
This exchange token is among the best because the United States Security and Exchange Commission approved it as a security, making it trustworthy. Having INX tokens in your INX.one account lets you enjoy massive discounts (up to 45%) on trading fees. INX only runs on the Ethereum blockchain. It has a maximum supply of 200 million tokens.
MX
MX is a Tron-based token with a total supply of 1 billion. It powers one of the biggest crypto exchanges, MEXC. MX holders get early access to the platform’s new features and have voting rights. Moreover, since MX is a deflationary token, meaning its circulating supply is reduced regularly through burning, its value could grow over time.
BNB
BNB is the fourth-largest crypto asset, boasting a market cap of $34.4 billion, according to CoinGecko. This exchange token is issued by Binance, the world’s biggest cryptocurrency exchange based on trading volume. You can use BNB to pay for trading fees and invest in startups via the exchange’s LaunchPad feature. Like MX, BNB is also deflationary.
BGB
As crypto exchange Bitget continues to grow in popularity among traders due to its unique features, like copy trading, investing in its native token, BGB seems to be a good idea. Besides enjoying discounted trading fees, you can stake your BGB tokens to earn passive income. BGB currently lives only on Ethereum and has a total supply of 2 billion.
BEST
Another token living on the Ethereum blockchain is BEST. The Bitpanda native token has seen its value grow in recent years as the crypto exchange continues to witness massive adoption. Bitpanda users can get the BEST token in various ways. Besides buying them, they can receive BEST by answering the academy Quiz and also based on their trading activity within a certain timeframe.
KCS
kCS is native to KuCoin, a crypto exchange that began its operations in 2017. Holding this exchange token on your KuCoin account makes you eligible for various perks, such as special bonuses and cheap trading fees. Moreover, you will get a portion of KuCoin’s revenue. KCS’s value is likely to increase in the future because the token is deflationary.
GT
Owning Gate.io’s GT is like having a VIP pass, which gives you access to exclusive deals. Firstly, as a GT holder, you will get early access to soon-to-be-launched tokens. Secondly, you will be allowed access to the exchange’s DeFi pool, letting you stake a variety of crypto assets in exchange for passive income.
Conclusion
As you can see, holding a centralized exchange token carries several benefits, from slashed trading fees to access to exclusive deals. However, remember these tokens are as volatile as any other unbacked crypto asset, so invest carefully.