- Bittrex exchange plans to launch its native exchange token in June.
- Analyst blasts Bittrex as the exchange experiences over 300% dip in market share in the past year.
- Can Bittrex ICO save the exchange from total abolition in the future?
In a tweet sent out on Tuesday, Bittrex Global exchange announced they will be launching their exchange token come June this year. Bittrex now looks to join top crypto exchanges such as OKEx ($OKB), Binance ($BNB), and Huobi ($HT) in adding a native token on the platform.
The Bittrex Global Exchange Token will not be available to U.S customers according to a previous tweet sent out by the exchange. No further information is provided by the exchange at the time of writing.
A failing Bittrex market?
As the exchange plays catch up to its ‘colleagues’, its good to remember Bittrex led the market share at one point in time but fell behind as the leading exchanges others took off. According to the exchange, U.S. regulations have been one of the major distractions from offering their own token faster and possible loss of market share over the years.
Currently, the exchange only controls 1% of the total crypto trading market share, down over 300% in the past year.
While the exchange blames the tough U.S regulations on their failing market share, Director of Research at The Block Research, Larry Cermak, believes the intense competition in the crypto exchange market and incompetence may have contributed to its downfall. In a heated blast towards Justin Sun owned Poloniex and Bittrex Larry tweeted,
“One thing I noticed is that both Poloniex and Bittrex blame their fall from grace on US regulation. They once dominated volumes but now both get less than 3%. While US regulation surely played a part, it was mostly incompetence and competition running them out of business.”
Larry Cermak, The Block
Can the exchange token save Bittrex business model?
While competition does not seem to slow down anytime soon, it seems the best option for Bittrex is following the trend –albeit two years late. Binance for example launched its Binance Coin (BNB) initial public sale back in 2017 when the ICO market was hot, raising $15 million in a matter of minutes. Since then, the price of BNB has grown over 100X.
While the current opportunities in trading in ICOs are not as lucrative, Bittrex may benefit from the extra cash generated by raising their token. Larry said,
“Coming out with exchange tokens won’t save them. But it might help them get one more cash grab before they are ultimately done.”
Do you think the planned ICO will save the current market share of Bittrex following the launch in June?