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
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
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.
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 has an impressive daily volume of over $2M. The volume will increase dramatically when the Digitex Futures exchange launches on 30th April.
Without question, exchange tokens have proven to be very popular among traders and investors within the crypto industry. Has this popularity translated into a positive return on investment (ROI)? Let’s examine the numbers.
Exchange Tokens Provide Excellent ROI
As you can see, each exchange token is above its ICO price. BNB investors have enjoyed an incredible rate of return during the past 18 months.
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.
Even more impressive than BNB has been the performance of DGTX. Why? Because the DGTX ICO occurred during the beginning of the cryptocurrency bear market. The bear market has continued for the past 15 months.
Despite the poor market conditions, the DGTX token has managed to reward its investors with a spectacular rate of return of 650.0%. 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 other crypto investments during the past 15 months? 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.
Full Disclosure: I own DGTX.
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.