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iCE3X Becomes First Crypto Exchange in South Africa to Launch Native Token

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Luis Monzon
Luis Monzon
Journalist. Reach me at Luis@ITNewsAfrica.com

iCE3X has become the first cryptocurrency exchange in South Africa to launch native token in the form of Artificial Intelligence Coin (AIC) – a token developed by iCE3X, one of the oldest cryptocurrency exchanges in South Africa and Nigeria. The token aims at reducing the cost of transactions on the platform provided the AIC token is used. AIC is an ERC-20 token created on the Ethereum blockchain.

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Following in the footsteps of exchanges such as Binance with its BNB token, the AIC token by iCE3X is a cryptocurrency that allows users to pay for trading fees at a discounted rate on the exchange.

Other exchanges worldwide who have native tokens include Huobi with its HT token, KuCoin with its KCS token, Bibox with its BIX token and OKEx with its OKB token.

Although discounted trading fees are the first use case for AIC, there’s nothing stopping the token from expanding its utility to use cases such as earning in-game rewards, for example, considering the iCE3X developer team’s experience in creating software for the gaming industry.

Exchange token utility varies between platforms. Binance, for example, gives crypto projects discounts for paying their listing fees in BNB. iCE3X, on the other hand, has a different approach in that it does not charge token listing fees but rather has other governance mechanisms for determining which tokens to list on the exchange – for example, taking the more customer-centric approach of analyzing which tokens are being requested by most users and other due diligence processes.

Exchange tokens are not the same as security tokens or even some other forms of utility tokens. There are potential benefits of owning exchange tokens but it is important for people to not view exchange tokens as an investment since they typically do not represent equity in the company. For example, simply owning AIC does not represent equity ownership of the iCE3X exchange.

However, token holders can be included in exchange governance processes through being afforded rights to vote e.g. voting for which tokens are listed next on the exchange. Holding exchange tokens may allow users to pay for services offered within and outside of the iCE3X ecosystem.

Revenues made by exchanges come mostly from trading fees. The bigger the volume traded, the more fees generated and the bigger the profit. Some people see the growing interest in cryptocurrencies as a sign that trusted and secure exchange platforms such as iCE3X will grow as more people get involved in the digital asset ecosystem.

There is a potential upward growth trajectory when crypto goes mainstream for exchanges with a proven track record such as iCE3X which has a history dating back to the advent of crypto exchange service platforms such and is still the only Kaspersky security audited exchange in the world.

Google trends show Nigeria and South Africa as the top countries in the world with the highest searches for terms such as Bitcoin and these are markets iCE3X has already been operating in for years. It’s not unreasonable to expect the cryptocurrency ecosystem to continue to grow and attract more people and with that more traders and larger volumes of digital asset trades taking place on platforms such as iCE3X.

If this turns out to be the case, early adopters of exchange tokens such as AIC could potentially see the demand for such tokens rise as more and more people seek to get reduced fees on their trades. Hypothetically, from a speculator’s perspective one could surmise that would create some direct correlation to the token price valuation in the future should that happen.

Edited by Luis Monzon

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