Exchanges are creating and releasing their tokens, which is a recent trend in the crypto industry. Binance has BNB, FTX has FTT, for example. Having a particular number of these tokens provides traders with benefits when they utilize them in the individual markets.
One common belief among crypto investors is that exchange tokens are a good investment since they can grow in value as long as the exchange remains trustworthy and relevant. These can take the shape of exchange rate discounts, lower withdrawal fees, or early access to impending airdrops.
Investing in Binance Coin, for example, makes sense if Binance has a positive public image. When investing in exchange tokens, one should keep in mind that they are so tightly linked to their platforms. If the site collapses, the investment will be at loss. That is because the value of exchange tokens is primarily extrinsic, unlike the intrinsic value of cryptocurrencies like Bitcoin or Ethereum. Let us analyze a few of them.
Binance Chain Coin (BNB)
Binance is one of the largest cryptocurrency exchanges based on daily trading volumes. BNB is one of the most valuable exchange tokens in terms of market capitalization. Many of the initiatives in the BNB Chain (previously Binance Smart Chain) ecosystem require BNB to function.
Metalents stated last week that it would collaborate with BNB Chain to help its users. Metalents’ connection with BNB Chain allows freelancers to make faster and cheaper payments. Coinbase has implemented support for BNB Chain (previously Binance Smart Chain) and plans to implement network bridging. Let us look at the BNB price:
After testing its long-term support level of $227 in the last several weeks, the price of BNB has increased by more than 50%. Moving forward, $227 will be a key support level, with $337 and $383 acting as significant resistances. BNB was unable to break above the $337 resistance level on its first attempt, but if it does, the bulls will be able to target $383. Before breaching over $337 in the following days, we may retrace to $278. The only bearish scenario is for BNB to break below the crucial support level at $227, however, this is improbable at the moment.
On May 1’2022, Crypto.com announced that the benefits of using its Visa-enabled cards would be reduced based on the tiers available. Monthly benefits on the lower tiers would be capped at $25 to $50. Staking incentives on Crypto.com’s cards would also end after the 180 days for everyone who staked on or before May 1, except for cards in the lowest two levels.
The platform’s native CRO token also dropped by about 30% as a result of the relocation. Cardholders reacted angrily, as was to be expected. Let us look at the CRO price:
The CRO token is currently trading at $0.185, down 80% from its all-time high of $0.965 set in November 2021. It has risen by more than 15% in recent weeks after testing a long-term bullish trendline (green dotted). Despite several attempts, CRO is still unable to break beyond the $0.20 resistance level. Because CRO has been declining for some months, we don’t have a strong long-term bullish bias.
The price will drop to $0.14 and below if the long-term bullish trendline (green dotted) is broken. The only bullish possibility is a substantial volume break above the $0.20 resistance level. It will allow CRO to reach price ranges of $0.25 and $0.32.
KuCoin Token (KCS)
KCS is KuCoin’s native currency, which was introduced in 2017 as a profit-sharing token that allows traders to earn from the exchange. KuCoin raised approximately $150 million in a pre-Series B round in 2022 and valued the company at $10 billion. KuCoin has also stated that “empowering KCS” would be a top priority for the company, and that it will develop KCS as a killer product rather than just an exchange token. KCS serves as the backbone of the KuCoin ecosystem in the long run. Let us review the KCS price
On May 12, KuCoin Token (KCS) rebounded significantly from a solid support level of $10. The KCS’s intraday trading volume is $12.3 million, representing a 53.5 percent increase. Multiple technical resistances, such as $17.72 and $21.12, must be challenged before shifting the bias to extremely bullish in the mid-term.
Since KCS has increased in price by more than 70% in the last two weeks, we may see a pullback to support levels at $13.40 or $14.32 before the short-term uptrend continues. The only bearish scenario will be if KCS breaks below the $10 price level.
Huobi Token (HT)
Huobi Token (HT) is a cryptocurrency exchange for Huobi Global’s native token. HT provides customers with premium access to the ecosystem’s many services. Despite the market’s downturn, Huobi Global launched PrimeEarn last year to encourage people to use bitcoin. Huobi PrimeEarn is growing in popularity, with items from the most recent event selling out in less than a minute. Staking large assets like BTC, ETH, and USDT for 14 days can generate a reasonable APY, with no restriction on the amount staked. Let us review HT price
We are not bullish on HT for the short-term at least because it is in a severe downtrend. Since December 2021, it was stuck in a range for a few months and has recently go up by around 30%. $6.10 is the level of immediate support. For HT to become bullish again, it must break above at least one Intermediary resistance level, such as $10.40. If the price of HT falls below $6.10, the next short-term support level is $3.54.
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