Crypto Madness. Platform tokens are regaining popularity as Bitcoin’s price action remains flat at elevated levels, indicating that the bull market trend is here to stay. Platform token profits, buyback and burn, and fee discounts are the three main areas of attention as this article compares and contrasts the platform tokens of several top platforms. The purpose of this analysis is to provide investors with helpful information.
Platform Token Earnings: MX Annual Increase 101%, 2024 Airdrop APY 107%
The price appreciation of the token itself is one form of active profits; dividends, fresh token offers, airdrops, and other perks are examples of passive earnings. These two components make up the total revenue from platform tokens. According to the data, MEXC’s platform token MX has surpassed BNB in annual growth, with a rise of 101%, while OKX’s platform token OKB has grown by less than 5% annually.
Crypto Madness: Bitget has significantly lower passive profits than MEXC compared to other second-tier exchanges through fresh token launches and airdrops. The passive earnings of MX are substantially greater. Averaging more than 150 tokens every month, MEXC has been airdropping them to MX holders continuously since last July, according to statistics. The airdrop of 927 project tokens over six months resulted in an annual percentage yield (APY) of up to 76%.
During the first four months of 2024, MEXC airdropped an average of approximately 250 tokens every month. With an APY of 107%, it was well beyond what BGB holders could hope for.
The official MEXC website claims that participating in an airdrop is easy. To access any future token airdrops at no cost, users need to hold MX. The airdrops for MEXC are far easier to participate in than those for other platform tokens, which means that more MX holders will benefit from the greater yields.
During bull markets, the value of MX tokens is grossly undervalued. Users can generate a compounding effect and obtain significant profit potential by converting their revenues from token airdrops into MX tokens after holding MX.
MX has the Biggest Trading Fee Discounts
One of the most prevalent promotional strategies utilized on cryptocurrency trading platforms is the utilization of platform tokens to compensate for trading expenses.
According to the statistics, the minimum charge for spot trading on various platforms is approximately 0.1%. On the other hand, Coinbase Pro and Kraken have very high fees, and neither does anything to facilitate platform token discounts or issue platform tokens.
Within this group, MEXC stands out as a significant example. Those users who have held over 1,000 MX tokens (about $4000) for fifteen consecutive days are eligible to get no trading fees, which is a significant benefit for users. In addition to owning tokens, users can reap the benefits of airdrops and possible price increases for tokens, allowing them to maximize their gains.
MEXC Allocates 40% of Profits for Buyback and Burn
Regarding platform tokens, one of the essential possibilities is to achieve a deflationary model through buyback and burn mechanisms, with many platforms applying methods that match this model. Even though every platform guarantees periodical token burns, the strength of these burns differs.
However, Compared to other platforms, MEXC has the highest buyback intensity. The platform has promised to burn forty per cent of its profits in MX tokens, aiming to keep the total number of MX tokens in circulation consistent at one hundred million. Crypto Madness: The information gathered indicates that, on average, MEXC burns around 2 million tokens every quarter. 23,506,155 MX tokens are burned, valued at approximately $100 million.
Bottom Line
Users of cryptocurrencies may want to think about where they stand in the complicated investing environment of the bull market and whether they should put their money into platform tokens with solid value support, top performance or from emerging platforms that offer a range of potential returns. With its ability to reduce investment risk and improve investment returns, MX is a significant alternative.
Also Read: Tax Tracking Crypto Transactions: A Complete Guide 2024
