CoinEx Token (CET), everything you need to know about the cryptocurrency from the CoinEx ecosystem

This article is written in partnership with CoinEx(read more)

CET, a token powering the CoinEx ecosystem

Today, the majority of cryptocurrency exchange platforms have their own token, which plays a central role in the functioning of an entire ecosystem.

Tokens of this type, more often referred to as ” utility tokens” are highly valued by exchange users. Holding them often allows them to reduce transaction fees, but also to gain access to various privileges.

In addition, the price of such a token generally evolves according to the performance of the platform and the new features it implements over time. Thus, owning theutility token of a platform, it can refer to an exposure to the development of the company, and its progression in the industry.

The CoinEx platform is no exception to the rule, and in January 2018 launched the CET, or CoinEx Token. A staple of CoinEx’s many products, the CET acts like fuel and offers a plethora of benefits to its holders.

At the heart of the infrastructure of all CoinEx products, the CET has multiple use cases, especially for users of the exchange platform.

To go further, read our review and tutorial on the CoinEx platform

Logo CoinEx

Logo of the CET token

The different roles of the CET token

For the CoinEx platform

The CET being the utility token of the CoinEx cryptocurrency exchange platform, it is via the latter that it brings the most benefits to those who hold it.

First of all, having CET in your wallet reduces trading fees on CoinEx, up to a maximum reduction of 30%. By default, trading fees on CoinEx are 0.2%, and these drop to 0.14% if settled with CET.

In addition, depending on the amount of CET a user holds, they can have additional discounts and go as low as 0.07% in fees. The rates charged change according to the number of CET tokens in the user’s portfolio. See the table below for details of the VIP tiers:

CoinEx Frais

In addition to CoinEx’s reduced fees, users with CET can get special qualifications for promotional campaigns on the platform, such as token airdrops, participation in Initial Exchange Offerings (IEO) organized on CoinEx, or even accelerated withdrawals and exclusive customer service (depending on VIP levels).

In the future, CoinEx intends to develop its ecosystem to expand the use cases for the CET token, including the upcoming introduction of a cryptocurrency payment service that can be used by other platforms and businesses.

For the CoinEx Smart Chain (CSC)

A blockchain developed by CoinEx teams, the CoinEx Smart Chain (CSC) is dedicated to decentralized applications.

Initially issued from the Ethereum blockchain, the CET token is now the native cryptocurrency of the CoinEx Smart Chain, and acts as the fuel for the latter. Here are the functions that CET occupies for the CoinEx Smart Chain:

  1. Validating nodes in the network receive a CET reward for each block mined;
  2. CET is used to pay transaction fees, but also to deploy smart contracts;
  3. The CET token is eligible for staking, and its holders can delegate their funds to validators to generate interest.

For the OneSwap multi-chain DEX (ONES)

The Coinx Smart Chain has its own decentralized exchange (DEX), OneSwap. Although it has its own token, ONES, the CET token also plays a central role in the operation of this DEX.

Indeed, many liquidity pools are partly represented by the CET, especially with the pairs CET/ONES and CET/USDT. And liquidity pools mean liquidity providers, and those who participate in the operation of the pools receive interest in proportion to their contribution.

The disinflationary mechanism of CET

To sustain the CET price over the long term and reduce the supply of tokens over time, CoinEx has implemented a disinflationary mechanism for its token.

Such a mechanism means that the entity behind the development of a token burns through some of its reserves, thus reducing the number of tokens in circulation.

When it comes to TEC specifically, the CoinEx platform buys back TECs from the market on a daily basis with part of its revenue coming from transaction fees. Then, every month, CoinEx burns all the accumulated CET.

Over the last 6 months prior to the publication of these lines, more than 450 million CET tokens have been removed from circulation thanks to the disinflationary mechanism. This large amount of tokens corresponds to the equivalent of almost $22 million.

Originally, when the first CETs were issued in January 2018, CoinEx was buying back CET every day with 50% of its transaction fee revenue, and then burning it. Initially, the platform planned to operate this way until the total supply of CET was reduced to 3 billion units.

However, taking into account feedback from its community, CoinEx decided in March 2021 to continue burning CET tokens beyond that limit. Since then, the platform has been using 20% of its revenue from transaction fees to perpetuate its token disinflation.

In full transparency, CoinEx shows all the details of the burning operations <a href=”https://www.coinex.com/token” target=”_blank” rel=”noopener”>on this page

Our opinion on the CET token from CoinEx

As the fuel of an entire ecosystem, the CET token is of some interest to users of CoinEx’s products, especially the exchange platform.

Having CET in one’s CoinEx wallet already offers several benefits, and the team is looking forward to embellishing CET with new use cases in the coming months.

However, with the price of the CET token closely tied to CoinEx’s future performance, CoinEx will have to work harder to make a lasting place for itself in a fiercely competitive industry.

To go further on your understanding of the CET token, you can check out this report from TokenInsight, a company specializing in cryptocurrency analysis.

Newsletter

Get a crypto news recap every Sunday And that’s it.

What you need to know about affiliate links. This page features assets, products or services related to investing. Some of the links in this article are affiliate links. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.

Investments in crypto-currencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, by any damage or loss caused as a result of the use of a good or service highlighted in this article. Crypto-asset related investments are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

This is a sponsored and paid article. Cryptoast has done prior research on the products or services featured on this page but could not be held responsible, directly or indirectly, by any damage or loss caused as a result of using any goods or services highlighted in this article. Crypto-asset related investments are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

About the author : Clement Wardzala

CoinEx Token (CET), everything you need to know about the cryptocurrency from the CoinEx ecosystem

twitter-soothsayerdata<img src=”https://yellowrocketagency.com/wp-content/uploads/2021/09/37_linkedin..png” alt=’twitter-soothsayerdata’ width=”30″ height=”30″ />

Editor-in-Chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I strive to share qualitative content so that the sector is democratized to all.
All articles by Clement Wardzala.