Exchange Token
An exchange token is issued by a trading platform to offer benefits such as fee discounts, rewards, access, or governance.
- Also known as
- Utility Token (Exchange)
Exchange tokens tie some user benefits to a trading platform's ecosystem. Common utilities include fee rebates, tiered account perks, staking rewards, launchpad access, or governance-like votes.
Risks include regulatory scrutiny, changing token economics, platform dependence, custodial exposure, and conflicts of interest. Token value often depends on the exchange's activity and reputation.
Related terms
Explore connected entries beyond the alphabetical index.
Cryptocurrency Exchange
→A cryptocurrency exchange is a platform for buying, selling, or trading digital assets through crypto or fiat markets.
Token
→A transferable or accountable unit defined by a blockchain protocol, smart contract, or application ledger.
Centralized Exchange (CEX)
→A custodial platform that matches orders and holds user funds.