Exchange token holders usually receive certain benefits or “perks” from the exchange. These could be a discount on trading fees, the right to participate in the governance process or as a way to reward market makers who create liquidity in the exchange. Some of the best faring exchange tokens out there right now are BNB, HT, and KCS. So, how does DGTX and its commission-free model stack up?
A Look at Popular Exchange Tokens
Exchange tokens (ETs) began to emerge around the middle of 2017. Consequently, there is a limited amount of available data to determine the success of these tokens in terms of their ROI. However, let’s review the data that is available in order to determine how well exchange tokens have performed.
We will analyze four of the more popular exchange tokens in terms of market capitalization, daily volume and the total supply of tokens. These are Binance’s BNB token, KuCoin’s KCS, Huobi’s HT, and our very own DGTX.
For an in-depth analysis of each one of these exchange tokens compared to DGTX individually, be sure to check out our blogs on the links above. In this article, we’re going to take a deep dive into the numbers and see what they tell us about how these four exchange tokens fare.
Analyzing The Four Popular Exchange Tokens’ Data
|BNB, KCS, HT, and DGTX Key Stats|
|Token||Market Cap||Avg 24 hr Volume||Circulating Supply||Overall Supply|
|Source: CoinMarketCap Feb 12, 2020|
As you can see from the table above, BNB is easily the most heavily traded exchange token in comparison to KCS, HT and DGTX. The same is also true in terms of market capitalization. Although, Huobi’s HT is certainly progressing fast.
Many traders are confused as it relates to market capitalization. The formula for market cap is actually quite simple. It’s the price of the exchange token multiplied by the circulating supply.
It’s worth noting that DGTX currently has a fairly low daily volume of over $1.6M. The volume will increase dramatically when the Digitex Futures exchange mainnet launches on 27 April.
If you want to get involved in the next revolution in crypto derivatives trading, you can buy DGTX by clicking on the button below. You’ll get an instant transaction with zero slippage buying directly from the Digitex Treasury including a 10% bonus airdropped into your account upon the mainnet launch.
Without question, exchange tokens have proven to be very popular among traders and investors within the crypto industry. And this popularity has translated into a positive return on investment (ROI) for them. Let’s examine the numbers.
Exchange Tokens Provide Excellent ROI
|BNB, KCS, HT, and DGTX Return on Investment|
|Token||ICO Date||ICO Price||Current Price||Rate of Return|
|BNB||1 July 2017||$0.100||$25.71||25,610%|
|KCS||13 Aug 2017||$0.224||$1.30||580.11%|
|HT||24 Jan 2018||$1.52||$4.73||311.2%|
|DGTX||15 Jan 2018||$0.010||$0.366||350%|
|Source: CoinMarketCap Feb 12, 2020|
As you can see, each exchange token is well above its ICO price. BNB investors have enjoyed an incredible rate of return since its ICO.
Binance launched its ICO at the perfect time. As you may recall, July 2017 marked the beginning of the huge rally in Bitcoin. BNB benefitted from a wave of speculative fever that engulfed the crypto industry during the summer and fall of 2017.
Perhaps as impressive as BNB has been the performance of DGTX. Why? Because the DGTX ICO occurred during the beginning of the cryptocurrency bear market. The bear market continued for more than a year and a half and still has yet to retest its 2017 highs.
Despite the poor market conditions, the DGTX token has managed to reward its investors with a spectacular rate of return of 350% at the time of writing. Additionally, Digitex has not even launched its futures trading exchange yet.
Although it’s impossible to forecast the price performance of any asset class, the DGTX token appears to have more upside potential when Digitex opens its exchange for trading.
Why have exchange tokens easily outperformed many other crypto investments so far? Based on my research, cryptocurrency exchanges offer the “purest investment play” within the crypto universe.
Over the course of the next decade, the digital currency industry will provide investors with a wide variety of opportunities to profit from this new asset class. Most likely, cryptocurrency exchanges will be at the top of the list in regard to return on investment (ROI).
In my opinion, this explains why exchange tokens have performed so well, despite the crypto bear market.
If you’re anxious to see what zero-free trading looks like on a one-click trading ladder, sign up for an account on the Digitex beta by clicking the button below. You can even try your hand at winning real DGTX prizes by entering the daily Digitex Trading Battle.
Full Disclosure: Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.