Exchange tokens are losing value
The bitcoin rate collapsed, leaving at the moment in the region of $ 45,000, which led to the liquidation of positions for $ 5.6 billion. The collapsed bitcoin pulled down key altcoins and exchange tokens. However, on Wednesday, February 24, a recovery was outlined. Over the past few hours, exchange tokens have risen in price by 50-80%.
So, the exchange token Binance (BNB) over the past day has grown by 36% over the past seven hours, approaching $ 267.
The exchange token of the cryptocurrency exchange Huobi Global for the day increased by 15% to $ 20.30
The cryptocurrency exchange token OKEX has grown in price by 20% over the past 24 hours to $ 17.7.
As the CEO of the Binance CIS cryptocurrency exchange Gleb Kostarev explained, such a fall and recovery in the price of exchange tokens is quite predictable.
“Now we are seeing a local correction in the market. BNB fell following other cryptocurrencies, including Ethereum and Bitcoin. The market has been rallying almost continuously over the past several weeks, and the observed correction was quite expected. The further course of BNB will largely depend on the general market situation, as well as on how actively the Binance Smart Chain blockchain will develop. Many projects are now switching to Binance Smart Chain due to the low cost of transactions, ”Gleb Kostyrev commented on the situation.
Experts assure that exchange tokens, which are rapidly growing in price, will be used not for their intended purpose, but for a speculative purpose. This opinion was voiced by Nikita Ovchinnik, Business Development Director 1inch.
“Firstly, the capitalization of cryptocurrencies is at a historic peak and no one knows what will happen to prices next. Secondly, Binance made the ambitious move to roll out its own Binance Smart Chain blockchain, and it was this fact that affected the price in the first place. However, there is a lot of work ahead and they still have to regain their position in the distributed network market. Thirdly, due to the high risks associated with excessive market inflation, users should pay more attention to the least volatile assets, in particular bitcoin and ether, which in any situation will remain liquid and will fall below the market on average, ”commented Nikita Ovchinnik …
But Maria Stankevich, director of development of the EXMO cryptocurrency exchange, is confident that exchange tokens can become an excellent alternative for diversifying the portfolio of investors and traders.
“Their main function is to simplify or reduce the cost of services for traders. I will add, however, that you still need to pay attention to the chart – despite the fact that the exchange’s native tokens are less volatile and depend on the project’s roadmap, burnings and the success of the exchange, pumps are not excluded. And often it may not even be the pump of the exchange itself, but the successive actions of the holders. After we saw the story of Reddit vs Wall Street, nothing should be ruled out, ”says Maria Stankevich.
In addition, exchanges are interested in issuing non-fungible tokens. For example, the OKEX exchange recently launched a platform for the sale of NFT tokens.
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