Bittrex announces they will be launching an exchange token in June

Bittrex Global, a crypto exchange, announced in a tweet that they will be releasing an exchange token next month. Further details are unavailable at this time other than the fact it will be unavailable to all U.S. persons.

While exchange tokens are not equity, they do confer equity-like rights in the form of token burns as we saw with Binance’s recent $52 million Q1 burn. Based on the model used by other exchange tokens, Bittrex will likely include a token burn whether it be through an internal treasury or through open market buybacks.

Why it matters

• The introduction of a native token can dramatically alter the business model of an exchange such as radically different fee structures or an ongoing commitment to expend a fixed percentage of revenue. While these parameters are unknown at this time, it could have a dramatic effect on how users interact with the exchange.
• Since the crypto market recently peaked in February, a handful of exchange tokens have outperformed the broader market. This is likely due to record volume stemming from the market volatility which increased each tokens respective burns.