Why keep any Exchange coins?

Can somebody convince me why exchange coins aren’t a security, and if they are a security why it would be a worthwhile investment vs just buying their stock.

Exchange coins IMO are absolutely the MOST likely to be popped for being securities. The SEC and the other division I can’t remember the name of that’s over cows and stuff, are already very interested in and are engaging with exchanges in litigation.

The aforementioned two organizations are angry that exchanges offer sales of securities. What could an exchange coin be other than a security? And those would logically be the first target of the next round of litigation.

If you hold exchange coins, why do you? And what’s your long term outlook for their future?

Edit: I’m referring to publicly traded exchanges. Can’t invest in DEXs and the gas fee argument is solid

Edit 2: After thinking about it more, I’m totally mind melted. No publicly traded companies offer an exchange coin, and no private held CEX doesn’t offer a coin. If you bought a private held exchange coin, the SEC or whatever would most likely have to reimburse you or offer stock equivalent for it

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16 thoughts on “Why keep any Exchange coins?”

  1. Many exchanges that have a coin operate their own blockchain. The exchange coin is required to use the blockchain as gas

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  2. If you are on Binance and you own a little BNB, then you can reduce your fees by paying in BNB. That is one reason to hold

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  3. Most exchanges don’t issue stocks in the traditional form.

    Also this whole securities thing is an usa thing only.

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  4. Because they may appreciate in price, like any crypto. Basing your investment choices on what may or may not be banned by the SEC isn’t the major factor in my investment decisions

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  5. If the SEC really wants to go after exchange coins I wouldn’t be so sure DEX’s would be safe. They typically are run or created by a group or foundation, those coins (in the SEC’s stupid money grabbing power hungry view) could be viewed in the same light as exchange coins. Just food for thought

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  6. Because ETH gas can suck to spend to send shitters around. Thats the only reason II keep any tokens whatsoever on an exchange. I got burned more than a few times during the run with coins stuck on chain and $300 gas fees for weeks preventing me from moving them.

    Everything else is self custody.

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  7. > What could an exchange coin be other than a security?

    Play money? Like WoW gold

    > And those would logically be the first target of the next round of litigation

    And so it goes on for years and years. Does anybody wonder why the SEC has only one live case? They’ve recently (May 2022) doubled their budget for cryptocurrency securities investigations. When those new investigators are hired, they’ll have the resources to pursue two cases at a time

    > why it would be a worthwhile investment vs just buying their stock

    Only Coinbase is listed (on Nasdaq), and they’re one of the few CEX which doesn’t have its own coin. This is not a coincidence

    The future has the SEC and Commodity Futures Trading Commission (CFTC) chasing shadows for decades, with the occasional successful show trial. But they’ll never have enough resources to have any impact at all

    Take one example, Binance. Binance coin is an easy target for tagging as an illegal security. None of the web of cross-holdings and subsidiaries with the name “Binance” is registered in the USA. The SEC has jurisdiction because US citizens have invested in Binance coin, but how useful is that jurisdiction if the defendant is ethereal, like trying to grasp smoke

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