History of Exchange Tokens
Exchange tokens are cryptocurrencies issued by cryptocurrency exchanges, serving multiple purposes such as fee discounts, voting rights, and other utility functions. Their history began with the launch of Binance Coin (BNB) in July 2017, which was designed to facilitate transactions on the Binance platform and incentivize trading. Following Binance's success, numerous exchanges started to issue their own tokens.
In late 2017, several exchanges like KuCoin and OKEx introduced their tokens, enhancing trading platforms' functionality while simultaneously growing their user base. The Initial Exchange Offerings (IEOs) emerged in 2019, often utilizing exchange tokens to gain early access to new projects.
Over time, exchange tokens have evolved, with some becoming integral components of decentralized finance (DeFi), allowing holders to stake tokens for rewards. As of 2023, popular tokens include BNB (Binance), HT (Huobi), and FTT (FTX, before its collapse).
Exchange tokens have transformed from mere utility tokens to essential assets in the cryptocurrency ecosystem, reflecting the growing influence of exchanges in shaping the future of digital finance.