An ‘Exchange Specific Coin’ is a custom coin or token that has been created by an exchange platform to serve a specific purpose — usually to pay fees for services provided by the platform. Traders are then offered a rebate as an incentive when they choose to pay their fees in this way.
The concept of an Exchange Specific Coin (we’ll call them ESC’s from here) is relatively new to the world of cryptocurrency. There aren’t many platforms who have tried it, and it seems they only really made an appearance in mid 2017, with Bitfinex being the first to introduce them in August via their sister platform Ethfinex and the Nectar Token.
ESC’s can provide a multitude of benefits to both the exchange platforms they belong to and the investors who buy them. Investors will already know that simply being listed on an exchange increases a coins value by a massive 25%. An ESC has the instant advantage of being listed on its specific platform — that’s a 25% increase in value without doing a thing!
The Exchange Specific Coins we will be looking at today are Binance (BNB), COSS Coin (COSS), KuCoin Shares (KCS) and CryptalDash (CRD).
July 2017 — The Launch Of Binance (BNB)
In just 6 months, Binance has grown from nothing to the world’s largest cryptocurrency exchange, with over $2 Billion in assets traded on average every 24 hour period. Millions of users sign up each week, with 240,000 in one hour last month when Binance lifted a temporary new member freeze.
The Binance cryptocoin (BNB) is traded and used on the Binance exchange. The value of the BNB has seen steady growth since its ICO last year, rising with the value of the exchange platform. BNB is now among the top 20 cryptocurrencies in the world.
The key moves in Binance’s business model for the BNB token were simple — make it easy to convert cash into BNB, and give it value by incentivising the purchase of the coin. You can use BNB to pay your fees on the Binance exchange, and while you can still choose to pay your fees in the cryptocurrency you’re exchanging, Binance offers a rebate as an incentive to pay fees in BNB. In your first year of membership on Binance, fees are discounted 50% when paid in BNB. With this discount Binance easily has the lowest fees in the industry.
Currently, BNB’s primary value is within the exchange. This is what makes BNB unique among most new coins — it has a practical use. Most investors will get the highest ROI out of cashing in on the BNB rebate. However, in the future, it’s possible the value of BNB could grow as an asset.
On a LinkedIn post, the company’s CEO Changpeng Zhao further detailed that the company made $7.5 million worth of profit in its first few months, and compared it to the $15 million it raised during its ICO.
If Binance continues its success on this level, it is bound to implement more features and programs. These new capabilities and add-ons will all likely use the BNB coin, appreciating the value even more. For the earliest investors, they’ve already seen a HUGE return on BNB.
Had you invested just $1,000 USD during the BNB ICO in August 2017, you would have seen returns of up to $112,500 by the end of January 2018. That’s in just 6 months!
September 2017 — COSS Launches the COSS Coin
COSS is an international crypto exchange platform, based out of Singapore, that started its coin ICO in August 2017. The COSS coin is an Ethereum-based ERC20 token that, like Binance, generates dividends derived from COSS exchange fees to holders of the token.
This structure has been very popular across exchange platforms in the ecosystem, as Binance’s and KuCoin’s dividend tokens have boomed in popularity since inception. This meant that not only have users received dividends for holding COSS, but the token price also rose steadily, increasing profits all around.
To follow the same model as we did with Binance to show profitability, had you invested $1,000 USD during the COSS ICO in August 2017, you would have been sitting on returns of $28,666 by the start of February 2018.
This was initially a highly profitable dynamic, but unfortunately COSS didn’t quite manage to become a dominant exchange. The platform has been called out multiple times for having terrible customer support, and this combined with other shortcomings ultimately played out to allow KuCoin to overtake COSS as a top competitor for Binance.
October 2017 — KuCoin Release KuCoin Shares (KCS)
Kucoin is a newer cryptocurrency exchange that launched operations near the end of 2017, with the end goal of “becoming one of the top 10 worldwide hottest exchange platforms.” In a similar business model to Binance, KuCoin offers relatively low tradings fees and incentives for holding (or trading) its native cryptocurrency (KCS). What’s unique about KuCoin is that they share 50% of their overall trading fee revenue with users holding their ESC. So, if the volume & amount of coins traded increases, the bonus of holding the KCS will increase as well.
As with Binance, the earliest investors have been rewarded with the biggest returns. To compare, traders who invested $1,000USD worth of KuCoin Shares during the ICO would have been boasting returns of $36,045 by the end of January 2018.
Unfortunately, Kucoin Exchange’s 24-hour volume has suffered on a large scale since they entered the list of Top 20 exchanges by 24-hour exchange volume in early January — at the time of writing this, KuCoin has dropped to number 23 in the rankings. Since then, their volume has declined and has remained below $100m in 24-hour volume for the past month. Kucoin Exchange also cut their affiliate referral program from their business model. This was a warning sign to their investors because the affiliate referral program was mentioned multiple times in their white paper, and the exchange had only been open for 3-months before getting rid of the system. This is in conjunction with the fact that Kucoin has not been paying out the referral fees for users who had referred others to the platform before Kucoin cut the program.
KuCoin’s shortcomings have left a gap in the market for another cryptocurrency exchange to take its place as Binance’s strongest competition. But what if there is an exchange platform out there that can do all of what Binance, KuCoin and Coss can do, and more?
Welcome to the CryptalDash Exchange
We’d like to introduce you to the CryptalDash Exchange Platform. If you haven’t already heard, CryptalDash is an industrial grade platform, with a robust matching engine and an exchange specific coin that (despite being very much in its infancy) has already sold out a Pre-ICO worth an incredible $3,000,000 USD. As they gain more attention every day, they seem to be following a similar route to Binance in its early stages.
Read 12 Reasons Why The CryptalDash Exchange is Expected To Lead The Market In 2018
The CryptalDash Exchange platform is the first to accommodate both retail and industrial trading in one place, making it the ultimate platform for any style of investor. The sleek single access platform provides investors with a gateway to multiple exchanges across five major cryptocurrency markets: BTC, ETH, XRP, Dash & XEM, offering the opportunity for traders to have choice markets all day long.
Whether you’re a serious cryptocurrency trader, or a small time hobby enthusiast, CryptalDash is the exchange you’ve been waiting for. The CryptalDash ICO is currently live and selling fast, so investors looking to take advantage of the discounted tokens and trading fees, a lifetime membership, and monthly dividends will need to invest now!
The CryptalDash Coin (CRD) will be used to pay for fees and services used on the CryptalDash Exchange platform, and holders will be rewarded with discounted fees when paying with CRD tokens.
While we cannot predict the future, we can make an educated projection by looking at the returns of similar business models. CryptalDash tokens are currently selling in their ICO for just $0.015, and going by the average historical returns, investing just $1,000 in CryptalDash could bring investors returns of around $50,000 USD (allowing for the market highs and lows) by January 2019.
The CryptalDash ICO is selling out fast, so if you want to have a chance at seeing returns like this then you’ll need to act now! When CryptalDash opens up its trading platform on the 15th of April, users will have access to features no other crypto exchange can offer, making it positioned to take over the cryptocurrency exchange market and, given its structure, early investors are the ones who will truly take the benefit.
The CryptalDash ICO sale is LIVE, Phases 1 and 2 sold out within 7 days so you’ll need to move fast — visit https://www.cryptaldash.com to participate.
Article published by the CryptalDash Exchange
Written by Becca Hallowes for CryptalDash.
CryptalDash ICO Page
CryptalDash Whitepaper
CryptalDash Exchange Masternode
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