What is DEX?
DEX (DEX) is a “mining exchange token” made by the Korean exchange Coinbit which is designed to overcome the problems of existing mining exchange tokens. In addition to acting as a method of payment of exchange fees, its goal is to raise the sustainability of the Coinbit exchange and return some of the profits incurred by the exchange to its users. Coinbit lists over 50 coins and tokens and conducts nearly half a billion dollars in trading volume on any given day. Because of Coinbit’s immense popularity, its exchange token, DEX, is also likely to enjoy the same.
History of DEX
Coinbit was initially launched in May 2018, quickly becoming one of South Korea’s largest exchanges, thanks to its popular low trading fee of 0.05%. It features high volume pairings against the Korean won for a number of major cryptocurrencies, as well as BTC, ETH and USDT pairings. In November 2018, the Israeli blockchain company Hexa Group partnered with Coinbit by means of investing in the company’s DEX token. The large investment in DEX by Hexa, Israel’s biggest blockchain company, will allow them to explore the growth potential of both Coinbit and DEX. By the middle of December 2018, DEX had become a top 100 coin by total market cap, making it one of the most popular exchange tokens of all time.
How DEX Works
DEX is an Ethereum-based token whose contract was created on October 24th, 2018. There were a total of 188,499,752,997 tokens created in the contract, though a significantly smaller portion of this amount is currently in supply or calculated into the coin’s total market capitalization value. DEX was written using the standard, ERC20 compliant token creation format, and is the native exchange token of the Coinbit exchange. DEX tokens are rewarded to traders on Coinbit in proportion to the amount of trading they’ve done. This type of distribution is known as “trading mining” and serves something along the lines of a customer rewards program. Coinbit has plans to expand the utility of its token in the future to include reducing trading fees and as the means of currency for other exchange-related functions.
As an ERC20 token, DEX has several advantages as a utility-based cryptocurrency, some of which include:
Coinbit investment opportunity. Holders of the DEX token will receive a direct share of profits accumulated by the exchange proportional to the size of their holdings. In this way, anyone can be an indirect investor in the success of the Coinbit exchange.
Ethereum-based. As an ERC20 token, DEX enjoys the speed, security and popularity of the Ethereum network, meaning it can be traded on a number of Ethereum-centric exchanges.
Utility token. Those who hold the token on the Coinbit exchange can have access to a number of features not enjoyed by regular users, such as fee reduction and access to special exchange functions.