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Crypto fever is on the rise: Can platform tokens be a good investment?

While Bitcoin (BTC) continues to move sideways at high levels, the market momentum remains unstoppable, and exchange tokens are once again attracting attention. This article analyzes and compares the native tokens of several leading exchanges, focusing on three factors: Token profitability, token buyback and burn, and trading fee incentives, to provide information. Reference for investors.

I. Platform token profitability: MX annual growth rate 101%, 2024 airdrop APY 107%

Platform token profits include two main parts: Active income is achieved from the price increase of the token itself and passive income, including dividends, new token allocations, airdrops and other benefits. According to CoinMarketCap data, the performance of the top 10 platform tokens by market capitalization over the past year is as follows:

Data shows that MEXC’s MX token is up 101% over the past year, surpassing BNB, while OKX’s OKB token has an annual gain of less than 5%.

Additionally, compared to other popular exchanges, Bitget’s passive income (From new token allocations and airdrops) is not as ideal as MEXC. MX’s passive income is significantly higher. According to statistics, since July last year, MEXC has distributed an average of more than 150 airdrops of tokens to users holding MX every month. Over six months, a total of 927 project tokens were airdropped, with an APY of up to 76%. Details as shown below:

From January to April 2024, the number of airdrops on MEXC increased significantly, on average nearly 250 tokens were airdropped each month, APY reached 107%, far exceeding users holding BGB.

According to MEXC’s official website, participating in the airdrop is a simple process. Users simply need to hold MX to receive all new token airdrops for free. Compared with other platforms, MEXC’s airdrop participation criteria are simpler, and more users holding MX receive higher profits.

In fact, the price of the MX token has not been properly appreciated in the context of a bullish market. After receiving token airdrops by holding MX, if they convert these earnings into MX tokens, users can easily achieve the compound interest effect, as well as huge profit potential.

II. Trading fee incentives: MX offers the biggest savings

On cryptocurrency trading platforms, using platform tokens to pay trading fees is a popular promotional strategy. Each platform has its own incentive strategy, summarized below:

According to statistics, Spot trading fees on many different platforms are usually at 0.1%. However, Coinbase Pro and Kraken have relatively high fees, do not issue platform tokens, and do not support fee reductions when using platform tokens.

Among these, MEXC stands out the most. Users who hold more than 1,000 MX tokens (Approximately $4000) for 15 consecutive days can enjoy 0 transaction fees, which truly brings great benefits to users. In addition to holding tokens, users can also enjoy airdrop benefits and the ability to increase token prices, maximizing profits.

III. MEXC allocates 40% of profits to buy back and burn MX

One of the most important factors for platform tokens is to achieve a deflationary model through a buyback and burn mechanism, and various platforms are implementing corresponding strategies. While all platforms promise regular token burns, the intensity will vary. MEXC has the highest buyback intensity, committing to allocate 40% of profits to burning MX tokens, in order to maintain the circulating supply at 100 million. Data shows that MEXC burns an average of about 2 million tokens per quarter, with a total of 23,506,155 MX tokens burned, worth about $100 million.

Conclude

In a diverse investment landscape as the market grows, cryptocurrency investors can consider holding exchange native tokens, with the following characteristics: stable value, excellent performance, and issued by trusted exchanges, with the potential to bring diverse profits. MEXC’s MX token is a potential option, which can help effectively reduce risks and achieve better investment returns.

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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