At least 74 crypto exchanges have their own native token,
each with their own special benefits and use cases.
But let's face it, you don't have the
time to deep dive into six dozen tokens, but I do.
So I put together a research report that looks
at five major criteria: the Market Cap, the circulating
supply versus total supply, trading perks like reduced fees,
exclusive access like launch pads or crypto startup projects,
and perks that you get from non-crypto partners.
This will help you decide which coin is best for you.
So let's kick off with the classic BNB.
BNB is the native token of the Binance Smart
Chain and has a large number of use cases.
Holding the BNB token can save you up to 25% in
trading fees and give you access to their launchpad, which has
helped to create some giants in the crypto space.
Here are some of their launchpad projects.
If you're unfamiliar with a launchpad, you can
think of it like a startup incubator for
crypto, where you can essentially buy tokens before
they launch to the open public.
Here are the tokenomics of BNB.
You can see 50% went to the ICO,
40% to the team, and 10% to angel investors.
There was a starting supply of 200 million tokens.
However, Binance uses 20% of their profits to buy
back and burn tokens, and they plan to do
so until they buy 50% of the total supply.
This is something that you'll see is fairly
common in the crypto exchange token space.
BNB is one of those tokens that I believe
will be around for a long time just because
there are too many pieces in crypto dependent on
this coin and ecosystem at this time.
Something else I need to let
you know is about my Patreon.
There you'll find additional content, my buy alerts.
Make sure you grab a spot as soon
as possible with the link in the description.
It is a great deal.
I'm not going to lie.
Now let's do a token that is very small,
the BIX token of the Bibox exchange.
If you haven't heard about
this one before, don't worry.
This is a very small market cap token with
a total supply of 500 million BIX tokens.
Currently the circulating supply is just at 36%,
with the team holding 35% of that.
Bibox is also committed to buying back and burning
up to 300 million tokens of its original supply.
This will of course help to bring
the price up in the future.
Now, the BIX token had a very strong rally
around April this year, reaching a market cap of
$32 million before crashing down to its present day numbers.
Bibox seems to have a rough time competing with
some of the larger international exchanges, which I can
only imagine is a tall order competing against Giants
with billions of dollars in cash.
What's holding the exchange back right now is
that Fiat currency is not currently supported.
So buying crypto with your dollars here means
that you'll have to go to a separate
exchange to purchase your crypto and then transfer
the assets into your Bibox account.
And many people just don't want to do that.
And it doesn't help that there aren't
as many coins available to buy on
the platform compared to some competitors.
Like I said, this is a smaller option on the list.
Next up, let's talk about Bitpanda's BEST Token.
That's the name of the token, by the way.
Not me calling it the best.
None of this is financial advice, of course.
This is another relatively young exchange with
added benefits for investors living in Europe.
The BEST token is up about 5X
from where it was earlier in the year.
It has a midsized market cap, and
the circulating supply is at 36%.
This is due to the fact that the team has a
steady release plan to help manage the volatility of the price.
Similar to Bibox, Bitpanda also has a program
for burning about 25% of the fees paid
in BEST on the exchange every quarter.
They plan to do this until they
burn half of the total supply.
You'll see that most of these exchanges have that half
of the total supply burn limit on their token, and you
might be wondering why they would do this.
So let me explain.
An exchange token is used in part to fund
the building of an exchange, so buying back tokens
is a way that they can pay back holders.
And burning tokens instead of doing something like a dividend
or cash payment helps to avoid additional tax because the
price of the token will go up as the supply
goes down as long as demand remains the same.
And the beauty of doing it this way is
that holders don't have to pay tax until they
sell, so the token price will go up.
They don't have to pay tax on
that until they sell, capital gains,
Then you pay your tax.
Now, one key element to the Bitpanda
story is their history of private fundraising.
One notable funding activity was led by Peter
Thiel's Valar Ventures, and the exchange is now
worth over $4 billion because of this.
Now what's made Bitpanda so successful for
crypto is the integration within Europe.
There are no transaction fees as
long as you stay within Eurozones.
All right, now let's talk for
a second about deflationary coins.
Arguably, what most cryptos aspire to become long term
Coins or tokens that are deflationary
reduce their supply through systematic burns.
And if you're wondering what happens when a coin
gets burned, it usually just means that the coins
are sent to a wallet that no one can
ever access, essentially taking that money out of circulation.
If you look at most new projects' white papers, there
will likely be rules around when token burns happen.
This could be the burning of transaction fees, algorithmic
burns or burns decided on by a committee.
Gate.io's GT token is one such coin that has
just entered into a state of deflation.
This was put into effect by a peculiar launch strategy.
So they took 1 billion GT tokens and they
sent those out as free gifts to some investors.
Gate.io then did a massive buyback, leaving
the remaining 300 million tokens, or about 26%
of its total supply in circulation.
This aggressive burn strategy seems
to be paying off, though.
At today's $6 price and
$465,000,000 market cap, the token is
showing pretty strong performance this year.
And there are also secondary benefits
to holding the token.
Holders, depending on the amount that you
have, are organized into VIP tiers.
The higher the tier, the higher your discount
on trading fees, which is also pretty common
for many of these tokens on this list.
Of the 16 tiers, 16 of them
they had to make it pretty complicated.
If you happen to be on eleven and up,
you even get fees as low as negative percentages
for trades, meaning you actually make a little bit
of money every time that you trade.
There's also exclusive access to Gate.io
startup, which works very
similar to Binance's launchpad.
Then you have perks with other dApps in the
Gate ecosystem like NFT Magic Box Marketplace, access to
crypto loan services and DeFi products.
All right, the next coin offers a unique
method to help push its price up.
This is Kucoin's KCS token. Like Gate.io,
it's gone deflationary in 2021, with the
circulating supply now at just over 170 million KCS.
Part of the strategy was that they would
release 200 million tokens to begin with, following
a schedule of lockup periods for tokens held
by the team and angel investors.
Now that both lockup periods have expired, the only force
left to change the supply of the tokens are the
quarterly burns done by the Kucoin team.
At least 10% of the company's profits will
go to buying back KCS for immediate destruction.
Now, any good exchange token would provide tangible
benefits for users on the exchange as well.
So like other exchanges, you can get discounted trading
fees depending on how many KCS that you hold.
And it only gets better from here because
Kucoin actually pays holders rewards based on the
success and revenue of the platform, 50% of
trading fee revenue goes to token holders.
This happens for anyone who holds
at least six KCS tokens.
The benefits have allowed KCS to shoot
up by about 2800% in 2021.
As a user of Kucoin, I am a fan of this token.
However, I do have a concern that I
absolutely need to express.
Paying out profits from the exchange
very likely could make this token of security in
the eyes of the SEC, which to me adds
a layer of risk that you need to consider.
If this were found to be a
security, this could hurt the token price.
If you are interested in trying out Kucoin as
a platform, I will have a link in the
description that offers you even more discounted trading fees.
Now next up is a token that recently launched into
the largest 15 cryptos by market cap, CRO Crypto.com's token.
There are a few reasons it's price has skyrocketed.
The first is aggressive marketing, very aggressive.
The exchange recently announced their 700
million dollar deal with the Staples Center to
rename it to Crypto.com Arena.
This makes it one of two exchanges,
the other being FTX, to rename a
historical sports venue for publicity purposes.
And earlier in October, the company launched a
global campaign featuring Matt Damon spreading the message.
Fortune Favors the Brave, a catchy tagline
that wants people to capitalize on crypto
FOMO to get them to sign up.
But it's more than just an
awareness driven growth campaign for CRO.
The exchange is also a front runner for allowing
noncrypto merchants to accept crypto as a form of
payment, and also you can use one of their
five Visa debit cards for up to 8% cash
back on purchases that you make with your crypto.
Staking is a big driver of consumer growth
on Crypto.com, as they have flexible terms for
locking up your crypto, and the CRO token
is essential for access to those services.
CRO's max supply is 100 billion, but
about 70 billion have been burned.
The tokenomics is a bit more complex compared to
some of these other tokens on the list.
There was no presale or ICO for the CRO
token, but there are pools for launch incentives, capital
reserves and what they call network long term incentives.
And don't worry if none of that makes
sense, it's just a different way to eventually
distribute some additional tokens with individual release plans.
Now, one thing to note is there doesn't seem
to be any planned token burns in the future.
They had that large burn, but there don't seem to
be any plan so far, so it will have to
pursue a growth strategy for the meantime, incentivizing adoption with
staking rewards and of course, reimburse Netflix and Spotify memberships
by staking the tokens as well.
Now let's talk about OKB, the token from
OKEx or the sister company for the US Okcoin.
This exchange has been one of the biggest
targets for the Chinese government's crackdown on crypto.
They crack down and make crypto
illegal, like every six months.
But despite the founders having disappeared for periods
of time, as Chinese business people tend to
do, the exchange has remained a strong contender
in the Asian market, and they handle up
to $6 billion in trades every day.
They're also one of the biggest exchanges globally, ranking
third in liquidity and fourth by trading volume.
However, OKB can be an erratic token to hold.
The token's price is up about 4X
this year, despite a lot of volatility.
Holders are given up to a 40% discount on trading fees,
depending on how much of the asset that they hold.
And OKB holders get more of the token as
passive income through the OKEx Earn program and similar
to the Binance launchpad or Gate.io startup, this
exchange has their own crop of new projects and
there's also OKEx chain which is their proprietary blockchain.
Through this, investors are able to participate in a
wider selection of DeFi activities like derivatives trading and
other dApps all fueled again by that OKB token.
Unlike CRO, OKB does have regular burns
where 30% of the quarterly profit from
transaction fees are used to destroy tokens.
Of the 1 billion tokens in OKB's Max supply,
only 300 million are currently in circulation, 700 million
OKB tokens are scheduled for release in 2022 nearly
half of which will be awarded to the public.
So there are a ton of exchanges and tokens to consider.
I know it's a lot, here are my closing thoughts on what's best.
When investing in an exchange token,
you need to consider all the benefits and most of
the benefits are gained through actually using the exchange.
This means that the best exchange token for you is
likely the one native to the platform that you use
most or if you use multiple platforms, there you go.
However, not all platforms are built equally.
Some offer far better options than
others depending on your needs.
If you aren't sure who is best for you, I highly
recommend checking out my video pinned on the end screen here
to find the exchange that is best for you comparing fees
and your individual needs.
Now I would like to thank you so much for watching
and I hope you have a profitable day!