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AAB Token Analysis: Three Factors Why Crypto Exchange Token Is Poised for Bull Run

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by Andrey Sergeenkov · 5 min read
AAB Token Analysis: Three Factors Why Crypto Exchange Token Is Poised for Bull Run
Photo: AAX Blog

The price movements of crypto exchange tokens are strongly connected with the crypto trading platform itself. Therefore, AAB token, a native token for the fast-rising AAX exchange, is poised for a massive price rally.

Over the years, exchanges have become some of the most formidable entities in the nascent crypto industry. As such, it comes as no surprise that crypto exchange tokens have become integral components of the budding crypto market. These assets offer investors and users access to special features and investment opportunities, among other benefits. However, regardless of the myriad of benefits a crypto exchange token offers, it is impossible to separate the successes of such tokens from the intrinsic value of their respective trading ecosystem.

More often than not, the price movements of an exchange token strongly correlate to the engagement levels recorded on the crypto trading platform. It is vital to research the value of the trading infrastructure, the performances of its suite of products, the compliance and security of the platform, and how effectively the token integrates with all the various aspects of the platform’s operations.

Hence, this is why AAB token is poised for a massive price rally. The digital asset launched in mid-April is the native token for the fast-rising AAX exchange, which provides sophisticated infrastructures for spot, derivatives, and OTC trading. And judging by the various milestones achieved by the trading facility in recent months, there is no doubt that its consolidated position in the crypto exchange market will eventually rub off on the price of its native token. Below are some of the reasons why this is a strong possibility:

AAX Records A Significant Increase in Its User Base

According to a blog post published on the 7th of August, AAX has officially doubled its user base and recorded a significant increase in trading volumes. The exchange claims that it now has over 200,000 registered users, which is a big feat considering that it just launched in the closing quarter of 2019. The exchange noted that much of the platform’s trading volume is generated from its futures markets, especially the USDT-settled BTC contracts.

It is worth noting that the deflation mechanism peculiar to AAB entails the daily buyback and burning of tokens with the revenue generated from the exchange’s futures markets. As such, the surge in engagement and trade volumes translate to more revenue, which means more fund is available to sustain the price of AAB. Already, the exchange has burned over $140,000 worth of tokens, and it will continue this unique system so long crypto derivatives remain an attractive component of the trading ecosystem.

AAB Is Integral to AAX Ecosystem

As earlier mentioned, one of the ways to ascertain the viability of an exchange token is to identify its utility. In the case of AAB, it integrates with the services and products available on the AAX ecosystem. The exchange offers premium customer services, discounts, high interest on the platform’s lending, staking, and borrowing products, among other benefits to AAB holders. To put this into perspective, AAX’s futures market is said to charge the lowest fees globally. Therefore, the 50% discounts accessible to token holders enable near-zero commissions.

Likewise, AAB users can unlock exclusive tools and services like trading signals, trading bots, and other premium customer support offerings. Besides, the platform has a savings product exclusively available to AAB holders. Called AAB plus, this service allows users to generate returns higher than what they will receive from traditional savings accounts. Most importantly, we expect the token to play an integral role in the platform’s proposed tokenized commodities and stock markets. By providing all these use cases, AAX has managed to establish a community-based trading ecosystem, which bodes well for AAB token.

AAX Sets to Improve Performance and Liquidity

There are various factors inducing growth in the AAX trading ecosystem. One of them is its prestigious matching engine that reduces latency on a scale never witnessed before in the crypto industry. AAX uses Millennium Exchange, a similar codebase powering the London Stock Exchange markets and other prominent traditional exchanges. By integrating this technology with its trading platform, AAX has successfully merged the low-latency capabilities of established markets with the highly rewarding volatile terrain of the crypto market.

Apart from enabling a high performing trading infrastructure, the platform has partnered with several audits and compliance-focused firms like Solidus Labs, Elliptic, Kroll, and Refinitiv to establish a transparent trading system. This shows the exchange’s commitment towards delivering innovative tools and a conducive environment to its community of retail and institutional traders. In line with this goal, AAX is looking to enable a highly-liquid exchange. Hence, the platform has already improved its spread and is working with top-tier market makers to reduce slippage. In the coming months, the exchange plans on adding more contracts and DeFi tokens. According to the AAX, this move will further increase the liquidity of the platform as well as provide traders with amplified chances of profiting off both crypto assets and tokenized assets.

Final Thought

Some might believe that it is too early to judge the long-term viability of AAB. However, an objective look at the factors surrounding the token’s deflation mechanism, its strong ties with a budding crypto exchange, and its wide range of use cases shows that AAB is one of the most promising digital assets available today.

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Natallia Maksimenko
Author: Andrey Sergeenkov

Andrey Sergeenkov is an IEO Adviser, digital entrepreneur with more than 10 years of experience, Hackernoon and BitTorrent investor. Assisted in raising more than 40 mln USD investments for more than 20 start-ups. He believes that actual usefulness is the best PR for any project.

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