Crypto exchanges have introduced native tokens for several reasons including being beneficial for both users and themselves. So, what do you know about these tokens?
Exchange or native tokens are digital assets, that each exchange platform uses for buying, selling, and exchanging cryptocurrencies yet have their value.
There are three primary use cases for exchange tokens that benefit both trader and the exchange:
1. Fees payments
The common use is to pay fees including listing, withdrawal, and deposit fees, especially with a rewarded discount.
2. Boosted liquidity
Having more liquidity means more leveled operations and assets that are more liquid can be more easily exchanged without substantial price shifts.The native tokens can be used as an intensive for traders to bring more activity, thus liquidity into a crypto network raises
3. Governance mechanism
Native tokens that are designed for this purpose, usually are offered to holders as a voting right or exclusive privileges. These tokens, also known as governance tokens, have become increasingly important, specifically for those who are planning to become fully community-run operations