Token generation events are often seen as a risk for coin companies as a poor performance can affect the long-term planning and execution of the project as well as public appeal and prestige. While the benefits may outweigh the risks for many, some opt to keep a closed investor circle to help avoid sell-offs, etc. Exchanges are often involved in the token events but their long-term benefits are often seen as debatable in the coin community with only a few of the exchange coins proving successful over time.
Cryptocurrency trading platform EXMO has recently announced that it would be canceling its public token event following the platform landing enough funds to see it through for margin lands and such. EXMO as an exchange is also not going to proceed a sale of its native cryptocurrency as the company could embark on radical changes in the system that may affect the perception regarding the company.
The Reasons behind the Decision
According to the company co-founder Ivan Petukhovsky:
“A stable positive dynamics of all financial indicators of the platform and the incredible user’s number increase (currently, we have more than 1.5 million traders, and there are more than 10,000 people that register on EXMO every day) allows us to fully supply our product business plan”
The EXMO exchange is seeing more and more users join its system and that is now allowing the exchange to proceed without a token generation event. The previously collected funds from the pre token events were meant for the creation of an insurance fund for margin loans and getting all the necessary licenses.
Margin trading is one of the biggest demands of the cryptocurrency traders due to its ability to generate more and more profits without risking much money of the traders themselves. It provides a loan facility to traders who can get them and possibly earn more on currency fluctuations.
EXMO is a registered exchange based in three top cities of London, Kiev and Moscow. It is the most popular cryptocurrency exchange in Eastern Europe especially Russian and Ukraine where its business alone accounts for it being one of the largest exchanges in the world in terms of volume. Overall, there are 1.5 million users on the exchange. It offers 53 trading pairs, 5 fiat currencies and their pairs and has a whopping $50 million daily trading volume.
Find out more about Exmo here – https://exmo.com/
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Image Courtesy: EXMO