Few cryptographic assets have outperformed Bitcoin this year, but the handle of them are mostly trading chips. Their success reflects that of the token vendors they hosted, which boosted the demand for tokens. But as the IOE starts to relax, can exchanges maintain momentum, or will BTC regain the advantage and end 2019 on a peak?
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2019 was the year of the symbol of exchange
Bitcoin has had a good week, but despite the collapse of all major crypto assets, thanks to the flare that melted the paint Friday, he still has some work to do. In the top 50 market capitalization crypto-currencies, with the exception of Chainlink, which recorded an 816% gain for the year, the only notable chips to beat the BTC are the huobi token ( 247%) and binance (235%). Just behind the BTC (148%) is another trading symbol, shares kucoin (138%).
Getting out of the top 50 and reaching 118 by market capitalization is Bitmax's best-performing exchange token this year. BTMX is up an impressive 394% for the year, just ahead of Okex, OKB, which ranks 91st in terms of market capitalization with annual gains of 358%. While there is still much to criticize about the usefulness of trading chips and their ability to maintain their new price levels, there is no doubt that 2019 was their year.
Can trading tokens escape the fate of ETH?
Anyone lurking around the cryptographic space in 2017 will remember the meteoric rise of all cryptographic assets, especially the ETH, which peaked at $ 1,400 on January 13, 2018, propelled there by the madness ICO. The sequence of events is well documented, with ETH being one of the most affected by the recession of the cryptography market. It took almost two years for the ETH to find its raison d'être – which is apparently the case now – and start recovering its heavy losses.
The fourth quarter tends to be a quiet time of year for token sales and, given the poor performance of IEOs launched to date, it is clear that the public's appetite for chip sales hosted fellowships decreases. ICOspeaks, which records upcoming chip sales, lists only two IEEs and ICOs each programmed. With the exception of the long tail fee-paying OIEs that feature on smaller, less-healthy stock exchanges such as Exmarkets and Latoken, there is not much on the horizon.
Ben Zhou, CEO of Bybit The exchange, told news.Bitcoin.com: "The platform chips were originally designed as a reward program for customers, while being inflated because of the hype of IEO during the last year. As what happened after the withdrawal of the ICO, investors will certainly come back on the intrinsic value of the platform chips – the success of the platform and its willingness to reward its customers. "Zhou then explained that there are ways to reward unsuspecting users on a token, in the case of Bybit, for example, by giving bonuses to users during registration and for various campaigns." Bybit says that "our customers have largely approved it".
It would also be premature to call the disappearance of the IEOs to predict the fall of the native trading chips. Cryptographic exchanges are one of the most profitable sectors in the industry so far and are not about to escape quietly into the night just because the entire IEO game has been steadily dwindling. As Binance has shown, the dashboard of chips is only the first of a series of functions that require the use of native tokens. The following products, including futures markets, also rely heavily on the trading chip. Kucoin is reproducing this formula on a T-shirt, with its Kumex derivatives platform to be launched in a few weeks.
Where there are exchanges, there are tokens of exchange
As custodians of cryptoconomy, trade can effectively force the use of their native tokens by incorporating trade discounts, by participating in the dissipation of IEO aerodromes and by offering other incentives that make the possession of advantageous trading chips. For the main supporters of this business model, such as Binance and Huobi, increasing the value of the token is another revenue stream. Rather than selling their own pool of chips on the market, it is in the interest of these giants to support the value of their original chip by any means possible, while monetizing other ways.
The increase in the usefulness of trading chips allows exchanges to present themselves as being more than a mere means of speculating on shitcoins, but rather as essential cogs in the cryptosphère. Their brand is the criterion by which their health is signaled to the world. As a result, the exchanges will stop at nothing for the price to be maintained. The only thing that could possibly put an end to this is an endemic bitcoin. If BTC continues its momentum, as was the case last Friday, no cryptographic resource will be safe.
Do you think that the trading chips can maintain their momentum? Let us know in the comments section below.
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