Gate.io Burned Over $21 Million In GT During Q2 2021
First introduced on September 1, 2020, GateChain Tokens (GT) is the native platform token on the Gate.io exchange platform. It allows users to receive discounts on trading fees, participate in listing votes, invest on the Gate.io Startup IEO platform and more.
“Since the introduction of GT tokens, Gate.io has dedicated 20% of its platform profits to buying back and burning GT tokens. 75% of the total burned tokens are bought on the open market with the remaining 25% bought in through various other parts of the Gate.io ecosystem. Gate.io publishes quarterly updates on each token burn”, Marie Tatibouet, CMO at Gate.io said in a statement.
Net Deflation Boosts Use For GT
With competition between cryptocurrency exchanges increasing at a rapid pace, platform tokens are increasingly becoming an important part of exchange operations and the individual ecosystems built around these exchanges. Exchanges such as Gate.io increasingly rely on innovative use cases for their tokens and incorporating them into the different features offered on their platforms. Deflationary tokens add value not only to the ecosystem but for investors as well.
As the native token on the Gate.io platform and its accompanying GateChain network, GT provides users with an all encompassing token that gives access to all of its different platforms and features such as the Gate.io Startup investment platform, NFT Magic Box marketplace and Listing Vote activities. GT also enhances the user experience by allowing discounted trading fees and an increase in the VIP tier system allowing higher limits and lower fees on transactions.
Gate.io is actively pursuing global partnerships in order to incorporate GT into the daily lives of millions of people through shopping platforms, clothing brands, travel and leisure, virtual gifts, digital assets, real estate transactions, medical services and more. By promoting the different use cases of the GT token, Gate.io hopes to accelerate its adoption globally, while promoting the global decentralized market.
The Strength Of Exchanges Increase The Popularity Of Platform Tokens
Mainstream exchanges have seen the popularity of their platform tokens rise fueled by the rise in overall cryptocurrency trading. The strength of exchanges increase the popularity of platform tokens. According to data from CoinGecko, pulled on August 2, 2021, the price of GT has increased by over 534% over the last year, much higher than many other platform tokens during the same period. GT’s value continued to rise, reaching $11.43 on May 13, 2021. Despite the overall decrease in the crypto market since May, GT continues to trade higher than it did in March and has shown an upward trend towards the end of July.
One of the main reasons GT has shown growth is the Gate.io team’s constant expansion of their platform and the features offered. In April, the company launched NFT Magic Box, a centralized NFT marketplace with zero thresholds to entry. In May, the GateChain mainnet was upgraded to officially support EVM, and is now compatible with many mainstream public chains thanks to its cross-chain support. In July, the company launched Gate Grants as an incubation platform for projects built on the GateChain platform. This expansion has positively contributed to the price of GT.
Exchanges remain at the forefront of the growing global cryptocurrency market and competition remains fierce. It’s not only a competition between exchange platforms, but overall ecosystems and platform tokens are the key to success and a benchmark between competitors. If the value of a platform token increases, so does the status of the exchange it represents and this feeds back to the users and the platform’s overall ecosystem. It remains important for exchanges to foster a positive, healthy environment for their ecosystems and their platform tokens to grow. The buying and burning of GT ensures that it cements its position as a leading platform token in the market.
About Gate.io
Gate.io enables a new generation of global traders with the tools to access the revolutionary age of cryptocurrencies. The “Gate ecosystem” consists of Gate.io, Wallet.io, HipoDeFi and GateChain. Gate.io enables blockchain enthusiasts to trade and store assets in over 800 of the leading cryptocurrencies for over 6 million users from over 190 countries. It is a one-stop-shop for spot, margin trading, futures, perpetual contracts, staking, C2C loans, options and DeFi.
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