Looking back at 2019, how did major exchange tokens perform? Are these platform tokens ideal investment targets for crypto investors, or merely tools for risk diversification? Did their returns surpass other cryptocurrencies?
Cryptocurrency exchanges have become foundational pillars of the crypto industry, bridging traditional finance with blockchain ecosystems. Within this framework, exchange tokens (or platform tokens) have emerged as strategic assets for long-term exchange growth.
Leading exchanges like Binance, Huobi, OKEx, and KuCoin continuously expand their tokens' utility—from fee discounts to profit-sharing models—which often correlates with price performance.
Exchange Token Performance Review
According to CryptoCompare data, OKEx’s OKB led 2019 with a 317.9% return, followed by:
- Huobi Token (HT): 170.8%
- Binance Coin (BNB): 121.4%
- KuCoin Shares (KCS): 73.9%
Notably, BNB dominated the first half of 2019 but lagged later as IEO activity cooled and Bitcoin retreated from its $13K peak. Meanwhile, OKB sustained momentum, outperforming rivals through year-end.
When comparing Bitcoin against these tokens (replacing KCS in the chart), BTC consistently underperformed, finishing with a 121.04% return—the lowest among the group.
Key Drivers of Exchange Token Value
Price fluctuations often reflect:
- Growing real-world utility
- Exchange ecosystem developments
- Supply reduction mechanisms
👉 Discover how top exchanges leverage tokenomics
Expanding Use Cases for Platform Tokens
Exchanges fiercely compete to enhance their tokens' functionality. Binance initially offered BNB solely for trading fee discounts, but its utility now includes:
- IEO participation tiers
- Quarterly buybacks/burns
- Staking rewards
However, OKB surpassed basic models with multifaceted applications outlined in OKEx’s ecosystem report:
| Use Case Category | Examples |
|---|---|
| Cybersecurity | Purchasing audits via Slowmist/Beosin |
| Financial Services | Loans/collateral on BitKan, Kcash, etc. |
| Travel | Hotel bookings on Tripio |
| E-Commerce | Cryptomall’s 10B+ product marketplace |
Such integrations demonstrate how exchange tokens evolve beyond speculative assets into functional payment/utility instruments.
Supply Reduction: The Scarcity Factor
Token burns significantly impact valuation:
- Binance: Regular BNB buybacks reduce circulating supply.
- OKEx: Burned 5.9M OKB in 2019 (5% total supply).
This artificial scarcity mirrors Bitcoin’s deflationary design, enhancing long-term value.
👉 Explore token burn mechanisms
Frequently Asked Questions
Q1: Are exchange tokens safer than altcoins?
A: While tied to established platforms, they remain volatile. Diversification is key.
Q2: How do token burns increase value?
A: Reducing supply (if demand holds) creates upward price pressure.
Q3: Can I use OKB/BNB outside their native platforms?
A: Yes—OKB’s travel/e-commerce partnerships and BNB’s DeFi integrations expand utility.
Q4: Why did OKB outperform BNB in 2019?
A: Aggressive ecosystem expansion and higher burn rates drove OKB’s demand.
Key Takeaways
- Exchange tokens like OKB, HT, and BNB delivered 3x–1.2x Bitcoin’s returns in 2019.
- Utility expansion (payment systems, burns) fuels sustained adoption.
- Monitor exchange roadmaps—new use cases often precede price rallies.
Disclaimer: Crypto investments carry high risk. Conduct independent research before investing.
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