The rise and rise of exchange tokens
MD, Dacxi UK & Europe
31 March, 2021 | 4 MIN
As the crypto industry matures, we expect to see consolidation; frankly, with over 9000 cryptocurrencies and over 500 crypto exchanges, the field is crowded. In terms of exchanges, there are already some winners in terms of pure size – Binance, Kraken, Coinbase are well known, but there aren’t many with a differentiated offering; they all seem to do essentially the same thing. Dacxi is unique in its stress on wealth building, through short to medium-term “holding” rather than trading. We also offer unique resources for newbies to the industry trying to navigate the minefield that is crypto. Most of our platform users are savvy retail investors, who have been put off by the jargon which makes the industry inaccessible. We believe we are unique in promoting crypto for wealth rather than trading purposes. The “hold” strategy seems to work well – in 2020 bitcoin appreciated 270% and Ethereum went up 450%, this year to date is similarly impressive, delivering gains of 100% and 146% respectively.
As a crypto commentator I am often asked “what’s next” and what are the major trends I expect to see in the industry. It is often said that one week in crypto is like 3 months in any other industry – and certainly 2021 hasn’t disappointed in this regard! There are two trends that have triumphed in the last quarter which are great news for Dacxi’s users.
The first is the mania for nonfungible tokens (NFTs), a blockchain-based certificate of ownership to represent digital files, such as art, audio, videos, items in video games and other forms of creative work. Recent examples include a meme of a flying pop-tart cat sold for $500,000, and Twitter’s found Jack Dorsey auctioning his first-ever tweet for $2.5m. Whilst I am personally uninspired around whether these purchases are good long-term investments, it is intriguing to see a drive for tokenization of niche asset classes. Dacxi is committed to providing crowd crypto investment only in up and coming tech businesses, as we believe these are the most scalable, global and thus valuable companies in the world. However, we receive calls weekly from a variety of businesses looking to fundraise, from vintage cars to fine wine to community projects. It is Dacxi’s plan to make its blockchain available to those businesses, who can, in turn, find their own investors. The drive for tokenization is a potential marketplace of trillions of dollars, and thus is a key use case for the DACXI coin.
It is intriguing therefore to see huge recent gains in exchange tokens in recent months, which we see as great news for Dacxi! The purpose of these coins is to power the ecosystem: great examples are Binance's BNB token and Uniswap’s UNI. As large corporates have started investing in crypto, for example, tesla and MicroStrategy, which has fuelled amazing gains in the bluechip crypto coins, the side effect is that various tokens are needed to power the exchanges they are using, similar to Ethereum’s gas charges for processing transactions, which allows the underlying blockchain to function. The gains of these previous niche coins have been stratospheric, and year to date the exchange tokens have rocketed. At the time of writing, BNB has delivered 696% gains, UNI 477% and OKB 94% – jawdropping over one quarter!
This week saw Dacxi retire the DAC pack offering, ahead of listing the DACXI coin. The first listing has been announced for the 29th of April, with a further 4 exchange planned to go live over the summer. This marks an important chapter in the company’s history for the users who have purchased coins historically and seen strong growth. We are thrilled that the coin will reach the open market soon, and look forward to seeing the traders’ reaction to the planned use case for the coin and the Dacxi platform. We owe a huge debt of gratitude to the users and partners whose foresight and confidence in Dacxi’s vision has enabled the coin to thrive. Exciting times both in crypto and for Dacxi coin holders!