Place/Date: – April 15th, 2020 at 6:27 pm UTC · 4 min read
Recently, TokenInsight has released Exchange Platform Token Research Report: AAB provides fresh perspectives on the AAX exchange and its platform token -AAB.
The concept of exchange platform token emerged in 2013, but it gained no market traction until 2018. At the moment, most of the exchanges have their own platform tokens and regard them as one of the means to maintain the platform’s internal operations.
The intrinsic value of the exchange platform tokens is supported and influenced by the platform. The stability, compliance, security mechanism, development trend and intrinsic value of the trading platform are some of the important considerations for users to choose which exchange platform tokens to invest. And exchange platform tokens can bring and attract new users to the trading platform, increase users’ stickiness and improve the exchange ecosystem as well as bring many other positive effects.
AAX is a digital asset exchange, headquartered in Malta. It was officially launched at the London Stock Exchange in November 2019. It is the world’s first crypto exchange to join the London Stock Exchange Groups’ ‘Partner Platform’. At present, AAX is the first crypto exchange to utilize LSEG’s Millennium Exchange matching engine, which can greatly reduce transaction delays and reduce downtime.
It has been announced that AAX is going to release its own platform token AAB on April 14th, 2020. As well as the announcement, AAX also posted a list of activities as well as discounts on the first 2 rounds of AAB selling. However, due to the unbalanced quality of the platform tokens in the industry, the market’s sentiment on the exchange tokens are mixed. As a result, a comprehensive analysis of the exchange platform token is required before making any investment decisions.
To discover AAX and its native token AAB, TokenInsight has released Exchange Platform Token Research Report: AAB. The fundamental performance of the platform, token economy, speculative value and application scenarios have all been taken into considerations in this report.
Here are some points in the report:
From the view of the fundamental performance of the platform, the security analysis, compliance analysis and technical analysis are considered. Following Cryptocurrency Security Standard (CCSS), AAX has to ensure that cryptocurrency transactions are safe and secure from a data breach. Besides, AAX refers to the UK FCA (Financial Conduct Authority) regulatory framework for self-regulation. And it is currently applying for global licenses (Hong Kong, China, and Singapore licenses are being applied for). What’s more, AAX uses the London Stock Exchange Millennium matching engine, which can adapt to high-frequency and high-concurrency trading scenarios and reduce the trading delay.
The overall strength of the AAX team is relatively strong. CEO Thor Chan has extensive working experience in the traditional financial industry. He combines the traditional stock exchange concepts and product matrices into the operation of AAX, serving as a better channel to promote the development of the platform. The other core members of the project team have gained rich blockchain and financial industry experience.
As a native token of AAX exchange, AAB users can obtain Premium Customer Service, Pioneer Program, Multi-tiered discount scheme, Optimized Wealth Management, and Platform Upgrades. Similar to other exchange platform tokens, AAB has its deflation mechanism, which uses 100% of the futures contract market revenue for AAB’s buyback and daily burning. The initial allocation of AAB is structured which has a detailed unlocking mechanism.
However, the AAX exchange has been operated for a relatively short period, and the exchange platform token industry is relatively competitive. Although the London Stock Exchange and its technology can endorse AAX and AAB’s value, the development potential of the platform still needs time to verify. The current ecosystem development plan of AAB is significantly different compared to the rest in the industry. Therefore, improved ecosystem models and application scenarios need to be developed in the future.