CEX Coins (also known as “native tokens” or “CEX tokens”) are coins or tokens issued by the exchange itself, designed to provide benefits to holders, such as:
Trading Fee Discounts: Users holding the exchange’s native coin can enjoy reduced trading fees, with the discount rate depending on the exchange’s specific policies.
Participation in IEOs: The IEO (Initial Exchange Offering) investment model gained popularity in early 2019 after the success of two projects on Binance Launchpad: BitTorrent (BTT) and Fetch.ai (FET). By holding Binance’s native token, BNB, users can use it to directly purchase coins or tokens from projects listed on Binance Launchpad.
Upgrading to VIP Accounts: Users who hold a specified amount of the exchange’s native token can upgrade to VIP accounts, receiving exclusive benefits such as reduced trading fees, increased margin lending interest rates, and more.
Earning Profits from the Exchange: This is similar to receiving dividends in the stock market. Users who purchase and hold the exchange’s native token for a certain period may receive a share of the exchange’s profits. Some notable CEXs offering this feature include KuCoin and BitMax.
