What Are Crypto Exchange Tokens or Native Token?
Imagine a loyalty program for crypto trading. Instead of earning points for buying groceries, you earn tokens for trading Bitcoin or Ethereum on a specific exchange. That’s the basic idea behind a crypto exchange token.
These are digital assets created by crypto exchanges themselves. They offer various benefits, like:
Boosting liquidity: By offering discounts on trading fees or other perks to token holders, exchanges encourage more people to use their platform, which makes it easier to buy and sell cryptocurrencies.
Encouraging trading: Holding tokens might give you extra votes in the exchange’s governance decisions, access to exclusive features, or even cashback on your trades. This makes trading more attractive and incentivizes users to hold onto their tokens.
Building a community: Owning exchange tokens can give you a sense of belonging and participation in the platform’s growth. Some exchanges even use their tokens to allow users to vote on future features or changes.
For example: Binance, a major crypto exchange, has its own token called BNB. BNB holders get discounts on trading fees, access to exclusive features like margin trading, and the ability to participate in voting on certain decisions that affect the platform.
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