Knowing What Token Exchange Is: Understanding, Use, And Example

The definition of token exchange and its uses. (Photo; Doc. Everscale)

JAKARTA - If you are active in the crypto market, you may have heard of the term "token exchange". This concept refers to various types of crypto tokens published by cryptocurrency exchanges. The basic concept of token exchange was first introduced by Binance in 2017 and since then, many other exchanges have followed in their footsteps.

Exchange tokens often do not have their own blockchain, but are published on other platforms such as Ethereum. They allow exchange users to gain certain benefits such as cutting trade fees, access to initial exchange offers (IEOs), or even the voting rights on the exchange.

However, the question is, what are the real advantages that can be obtained from holding token exchanges? First of all, users holding token exchanges on certain cryptocurrency exchanges will get significant trade fees.

For example, Binance Exchange has issued their own crypto token known as Binance Coin (BNB). Users holding BNB on at the Binance crypto exchange will be subject to lower trading costs than users who do not hold the token. Another advantage of holding token exchange is being able to access facilities such as IEO (initial exchange offices) and voting rights on the exchange.

In addition, this token can also function as a form of investment. Like most cryptocurrencies, the value of the token exchange can go up or down over time. Therefore, if the value of this type of token increases, users can sell the token at a higher price and reap profits. The following is the understanding, usefulness, and examples of token exchanges.

Token exchange refers to various types of crypto tokens issued by cryptocurrency exchanges. Exchange tokens were first introduced by Binance in 2017. These tokens generally do not have their own blockchain, but are published on other platforms, such as Ethereum.

Token exchange provides several advantages for users holding it on the exchange concerned. For example, users who own BNB in Binance will get a discount on trading costs and can access facilities such as an initial exchange offering (IEO). Tokens issued by other exchanges, such as OKEx and Huobi, also offer the same benefits for users of the exchange.

If you are interested in trading with cryptocurrencies, it is important to know the various token exchanges available on the market. In this article, we will discuss four cryptocurrencies from leading exchanges, namely Binance Coin (BNB) from Binance, Huobi Token (HT) from Huobi, KuCoin Shares (KCS) from KuCoin, and Token OKEx (OKB) from OKEx.

Binance Coin (BNB) is the original cryptocurrency of the leading Binance exchange that has the largest daily trading volume in the world. Binance CEO Changpeng Zhao has stated that their goal is to "compleate BNB with as much use as they can".

The main function and case use of BNB is to reduce trading costs in Binance. platform users can get a variety of discounts if they choose to pay trading fees with BNB. In addition, BNB is the only method to participate in the popular Binance Launchpad fundraising event. A huge demand for this exchange cryptocurrency was created because those who wanted to participate in the initial exchange offer were only allowed to buy tokens sold using BNB.

Huobi is another leading crypto exchange with a fairly large daily trading volume. Huobi Token (HT) was introduced to several interesting use cases, one of which is to reduce trading costs on the platform as well as BNB. In addition, HT can be used as collateral to become a certified OTC trader in Huobi and as a voting tool in determining the list of new coins on the stock exchange.

Huobi also launched a similar blockchain project launch platform called Huobi Prime. Investors interested in participating in fundraising events on this platform are required to have a daily average of 500 HT for at least 30 days before the fundraising event.

KuCoin is a relatively new crypto exchange but has attracted attention for registering a less-known and less-capalyzed cryptocurrency, which at the time, more and more large costs refused to register. The exchange launched an original token called KuCoin Shares, which involves asset allocations. Every day, KuCoin distributes 50 percent of its trading costs to KCS token holders. Therefore, this is a kind of dividend payment scheme.

KuCoin also launched KuCoin Spotlight, a blockchain project launch platform similar to Huobi and Binance. Recently, KuCoin

OKB is an original token of the leading cryptocurrency exchange OKEx. OKB is a utility token issued by the OK Blockchain Foundation. This token does not have any initial coin offerings or public fundraising.

OKB is an ERC-20-based utility token that is said to be redirected to the OKEx public blockchain called OKChain in the future. One thing to note is that OKEx launched a token-sharing system that provides 60 percent of all OKB tokens to OKEx users for free.

The key feature of the OKB token is to remove transaction barriers, as well as increase operational efficiency in its ecosystem. One of the things to consider, however, is that investors with more than 500,000 OKB locked in Escrow can review and support the list of token candidates to be listed.

According to information from its official website, TKO is a BSC-based holistic CeFi + DeFi ecosystem: the first to be the pioneer of a strategy of a dual approach for every Indonesian to participate in crypto for greater financial equity. It combines solutions, such as Farming Pool and TKONFT, to provide unrivaled security and progress.

TKO is intended as an entry point for most crypto newcomers on the Tokocrypto trading platform. TKO offers discounted trading costs, air deposit rights, redeeming merchandise, and many privileges for users.

Tokocrypto is a leading crypto exchange in Indonesia founded by Pang Xue Kai. Tokocrypto trading platform was officially launched in 2018 and still exists today. In December 2022, Tokocrypto was reported to have been acquired by the world's largest crypto exchange, Binance.

That is the meaning of token exchanges, their uses, and examples. By understanding the meaning of token exchanges, you are expected to invest wisely and understand the risks before investing.