Another day, another Bloody [insert weekday here], with Bitcoin being as unstable as ever, dropping 40% since May 6th. Other coins are also in the red, with most of them dropping to 20%-30% in value in terms of market capitalization, leaving most buyers scratching their heads.
It has also created doubts whether the top-10 coins in terms of market capitalization, or the so called “blue chips” in cryptocurrency, are really stable as people perceive them as. Most of the top 100 coins on coinmarketcap.com are in the red compared to their values a month ago. And this is despite projects like ICON (ICX), Request Network (REQ), EOS (EOS) and iExec RLC (RLC) preparing or launching their mainnet.
Amid this ongoing bear market, traders found an unlikely safe option to keep their funds: tokens used by cryptocurrency exchanges. Coins like Binance Coin (BNB) and Bibox Coin (BIX) have been favorable options for traders to keep their funds safe (pun intended). Binance Coin has been up 67% since May 1st. Bibox Token (BIX) has almost tripled its value since May 1st. Newer exchanges (like FCoin, for example), have quadrupled in value before going down.
This phenomena must be because of the readily available use case of cryptocurrency exchange tokens. As they are used for discounts, deals, gambling bets and competitions for free coins, its value as a utility coin is certain. Couple this with the fact the value of the coin is directly related to the value of the exchange, with Binance now taking the spot of largest exchange, and Bibox emerging as a top cryptocurrency exchange in the world. Investors are also giving funds to sep up new cryptocurrency exchanges here in the country and around the world. Prominent examples are FCoin, and BKEx.
This is despite the hacks on cryptocurrency exchanges, which are seen as the cause of Bitcoin’s price dumps.
This trend looks like it’ll stay for the time being, at least until bitcoin’s price finally stabilizes. It could be seen that people would much rather hide their funds on crypto exchange coins than Tether (USDT), for example.
So if you want to keep those “funds safe”, you could opt for crypto exchange coins.