Most cryptocurrencies enthusiasts are closing the year looking at metaverse cryptocurrencies and blockchain games . But there are other categories in the crypto market that could see big growth in the next year, broker tokens.
Tokens based on centralized brokerages showed massive gains in 2022, even without as much hype as the meme currencies, for example. So let's take a look at what are the biggest digital assets of growing brokerages to keep an eye on in 2022.
According to Jameson Lopp, one of the Bitcoin developers and software engineer who has spent years managing the infrastructure used by some of the industry's largest exchanges, bitcoin brokerages are one of the most proven business models in the cryptocurrency space.
However, it is worth remembering that exchanges tokens are not regulated stocks or bonds that distribute dividends or represent parts of the company, they are generally utility tokens that deliver benefits to platform users.
But, anyway, they tend to show growth or decline as brokers gain or lose space in the industry.
I should also point out that you should not take the following list as an investment recommendation, do your own research before purchasing any asset expecting a financial return.
5) Binance Coin (BNB)
Binance Coin was the first brokerage cryptoactive to really explode and stay in the top 3 cryptocurrencies with the highest market capitalization. The global exchange took the podium of the largest volume broker in the world and so its token remains high.
The oldest in the market remember that before Binance, which many people now cite as one of their main exchanges, Poloniex was a global leader. However, Binance has diversified its products and offered a huge amount of benefits to crypto investors: Passive income, discounted trading fees, NFT platform, payment solution and even an alternative network for cheaper withdrawals and a native currency , to BNB.
Binance is currently the leader in the national market, with 34.7% of bitcoin volume in Brazil in the month of November . Of the more than 26 thousand bitcoins traded by Brazilians, Binance was the intermediary of choice for 9256.74 BTC.
Although the token is not a stock of the broker and the holders are not shareholders, BNB establishes a burning rule according to the exchange volume, which directly benefits crypto holders.
Additionally, Binance recently announced a new token-burning mechanism , further enhancing the scarcity and deflationary nature of Binance Coin. Similar to Ethereum's EIP-1559, BNB now burns a fixed proportion of fees charged by validators on each block.
As a result of its growth, in just one year, Binance Coin went from $28.2 to over $565. See below for BNB's price history, according to CoinGoLive data.
As of this writing, Binance Coin's market capitalization is $95.7 billion with a daily volume of $2.1 billion.
But, as the cryptocurrency market is very dynamic, it is still quite possible that other exchanges will take the place of Binance and their tokens will grow much more.
4) Crypto.com (CRO)
Currently the second largest centralized broker token, CRO is Crypto.com's crypto-active and, similar to BNB, it also started out on the Ethereum network as an ERC-20 token and then migrated to a blockchain of its own.
The company is known for betting on aggressive marketing, sponsoring Formula 1, Libertadores, the NBA Philadelphia 76ers basketball team, and forging other giant deals. Crypto.com's last major media appearance was its purchase of the name rights to the famous Staples Center stadium in Los Angeles, which was renamed the CryptoCom Arena.
Their marketing moves line up with big expansion plans, including buying other brokers , which boosted CRO by nearly 250% earlier in the month.
Crypto.com also recently arrived in Brazil launching a cryptocurrency card in partnership with Visa, with the intention of accelerating the adoption of cryptos in the country. The service has a cashback of up to 8%, which can even be accumulated if used on the Coingoback platform.
In one year, the CRO token went from 9 cents to over 56 cents, showing gains of 837%. See below for Crypto.com's price history as per CoinGoLive data.
As of this writing, the market capitalization of Crypto.com (CRO) is $14.3 billion with a daily volume of $295 million.
3) UNUS SED LEO, also known as LEO Token
Despite its weird name, the token is created by one of the most traditional exchanges in the cryptocurrency market, Bitfinex. It is a utility token that offers users a discount on trading fees within the platform.
LEO, however, has some important differences compared to other brokerage tokens. First, it won't circulate forever, as the intention from the start was that the brokerage itself would eventually buy back every available offer.
This is explained by the creation story of UNUS SED LEO: in 2019 the company Bitfinex used to process its payments, Crypto Capital, had funds confiscated by the government, so iFinex (Bitfinex's parent company) issued the token to cover the deficit financial.
Investors have helped Bitfinex through this problem, and because of that, it promises to “pay it back” by promising to buy all LEO tokens gradually.
The amount that is purchased monthly by the brokerage is burned and is equivalent to at least 27% of the revenue generated by iFinex. That is, as the company profits it “returns” to the market the help that investors gave it when buying the token in the past.
Now, with iFinex at the head of El Salvador's Bitcoin Bonds, enthusiasts have ended up speculating on the exchange's token's growth, which could end up partnering with more countries in the coming years.
In one year, the LEO Token went from $1.35 to $3.69, representing a 173% return. Below is the price history of UNUS SED LEO as per CoinGoLive data.
As of this writing, LEO's market capitalization is $3.4 billion with a daily volume of $455,000.
2) Huobi Token (HT)
Huobi is another giant in the international market that is arriving in Brazil with very accurate marketing, offering free cryptocurrencies and even PlayStation 5 for users in the country.
The exchange is growing fast and has a very strong community around it. On Telegram, Huobi Brasil is close to reaching the mark of 5000 people (and that's where they advertise promotions and benefits, access ).
In addition, the large amount of active services available for trading is another differential of the broker. As the broker expands, your token benefits from price movements.
The HT is based on the Ethereum blockchain as an ERC-20 token and was released in January 2018. The Huobi token offers more than discounted trading fees: token holders have the right to vote on exchange decisions, can receive crypto rewards for seasonal buybacks and also get early access to special events.
Last year, the Huobi Token went from US$4.09 to US$10.06, up more than 148%. See below for HT price history as per CoinGoLive data.
As of this writing, the market capitalization of the Huobi Token is US$1.6 billion with a daily volume of US$128.7 million.
1) OKEx Token (OKB)
Although OKB does not have a market cap as high as most of the competing tokens on this list, the OKEx exchange is second only to Binance in volume worldwide. This is relevant as OKB also has a regular burn system based on the broker's trading fee income.
“We used 30% of OKEx's cash trading fee revenue to repurchase OKB out of the 300 million outstanding inventory. Every 3 months, we burn tokens, sending them to a burning address that no one can access.” says the token's official website.
Similar to Huobi Token, OKB also gives holders voting rights in a decentralized governance system, in addition to encouraging the holding of the asset.
In addition, OKEx also has its differentials: while others end up competing for more available currencies, this broker focuses on offering options trading. Its global growth ends up influencing the performance of the cryptoactive.
Like all the other tokens on this list, OKB rose more than bitcoin in 2022, showing the potential of this exchange market and how profitable they can be.
Last year, the OKB went from $5.25 to $23.95, up 357%. Below is the price history of OKB as per CoinGoLive data.
As of this writing, OKB's market capitalization is US$6.3 billion with a daily volume of US$709 million.
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The 5 brokerage tokens to keep an eye on in 2022 content first appeared in Cointimes .