A collegue and I analysed some exchange native tokens today and it's quite hard not to wanna ape on some exchange tokens especially when listening to how they're could be utilised and how well they could perform. BNB which is the native token of the Binance crypto exchange is one of the those exchange tokens that have broken records. I remember when I started using Binance when BNB's price was around $10 per token and was so easy to get. BNB currently trades above $400 per token after getting to an ATH of almost $700.
I was lucky enough to hold on to some Huobi tokens early last year when I was an active user of the exchange and since then, I'm always on the look out for exchange tokens. The performance of exchange native tokens is just so crazy and one can't help but think, why are they so important and
why do they perform so well??
Basically, these tokens were created to allow users of the crypto exchange regardless of their experiences have some form of interaction with cryptos. Exchange are the only places in the world where crypto investors can easily trade cryptos and so having a native token kinda sounds like the best way to make the entire journey and use of a crypto exchange easy. The native tokens of an exchanges are one of the easiest to own especially when you use the exchange.
Native tokens particularly have massive utility and that's one reason I got interested in them. For example, BNB is used for almost anything on Binance exchange from governance to defi, nft transactions, Binance smart chain transactions, trading e.t.c.
This utility makes them stand out and differentiates them from meme coins with no actual use. Utility is a big deal to me and I tend to be interested in any crypto with massive use.
Most native tokens of exchanges have done so well in the past few years both in their growing utility and price performance. I'm currently on the look out for more exchange tokens with potentials and make decisions on which of them imma hodl for the next bull market.
Disclaimer:
My posts are based on my ideas as well as experiences and are not financial advices. The cryptocurrency market is quite unpredictable and full of uncertainties so please do your due research before investing in any project.