Abbout Bitpanda Ecosystem Token (BEST)

What is the difference between BEST and other exchange tokens?

We are currently living in turbulent times in the cryptocurrency market and confidence has been shaken due to the collapse of FTX, which has shaken the entire financial world.

Although this event has brought exchange tokens into question, one thing has become clear: not all tokens are created equal.

In this blog, we explain exchange tokens, and highlight the main differences between other tokens and the Bitpanda Ecosystem Token (BEST).

Buy Bitpanda Ecosystem Token (BEST)

What are exchange tokens?

As its name suggests, an exchange token is a digital asset that is native to a cryptocurrency platform and is minted, or created, by that platform.

Exchange tokens are launched for a variety of reasons, but most often it is to offer users of that particular platform special rewards, benefits, incentives, and discounts on trading fees.

However, exchange tokens work like any other cryptocurrency.

You can buy the token directly from the platform itself and hold, trade or sell it.

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What is the Bitpanda Ecosystem Token (BEST)?

Bitpanda’s goal has always been to offer the users a safe, simple and rewarding investment experience.

The Bitpanda Ecosystem Token (BEST) was created with that in mind: to repay the loyal Bitpanda community and reward them by adding more value to their Bitpanda experience.

In a nutshell, BEST allows you to participate in Bitpanda’s loyalty and rewards program.

Owning BEST and trading on Bitpanda Broker allows you to receive a wide range of benefits and advantages, such as receiving weekly BEST rewards, higher staking rewards and special access to the platform.

BEST is Bitpanda’s loyalty program to incentivize users to keep and earn BEST across the Bitpanda ecosystem.

Go to Bitpanda’s Official Website

How does BEST work?

Unlike other native exchange tokens that are used to borrow risky loans and engage in financial transactions, the BEST token is used to reward active Bitpanda users.

It is traded almost exclusively on Bitpanda and is therefore not subject to settlement by other exchanges.

From a technological point of view, BEST is issued on the Ethereum blockchain as an ERC20 token.

Bitpanda created an amount of 1 billion BEST (which will never increase) and 500,000,000 BEST were offered during the IEO, with Bitpanda holding the rest as company reserves.

From the initial mintage of 1 billion BEST, Bitpanda has burned over 198 million BEST.

The burning process means that there are fewer tokens in circulation, making the token more valuable, and Bitpanda will continue to burn on a monthly basis until Bitpanda reaches a maximum of 75% of the total supply of BEST.

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Comparing BEST with other tokens

Cryptocurrency exchanges often create native exchange tokens for various reasons;

  • Raise capital and improve liquidity
  • Provide incentives to users for staking
  • Cover transaction costs
  • Serve as a governing mechanism
  • Offer users special discounts on commissions
  • Provide access to rewards and loyalty programs

In the case of FTX, the FTT token powered its own platform facilitating the collection of transaction fees and forming an insurance fund for investors.

It was also used to borrow against greatly inflated stakes that financially propped up the economic viability of the platform, which ultimately proved its undoing.

CRO is the native token of Cronos, a decentralized blockchain that is born from the Crypto.com network.

The token is earned primarily as a reward for processing and verifying transactions and each node can stake a fixed amount of CRO tokens in exchange for the opportunity to participate in network operations.

BNB, the native token of the Binance platform, also started as an ERC20 token, but is now hosted on its own chain.

BNB was initially launched to offer users discounted trading fees, and is currently among the top five cryptocurrencies based on market capitalization.

Its use cases have expanded to cover transaction fees on the Binance chain and to pay for online services.

Unlike other tokens, BEST allows users to directly participate in major benefits such as receiving weekly BEST rewards and higher stakes rewards.

BEST is traded almost exclusively on Bitpanda and this means that it is not subject to the settlement risk of other platforms and is not used as collateral in any financial transactions.

The BEST token is a prerequisite to participate in the loyalty and rewards program with exclusive benefits on the platform.

The bottom line is that Bitpanda is not dependent on users to buy and hold BEST, it is simply a way of rewarding the most active users.

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Bitpanda is safe and regulated

Bitpanda recognizes and understand the scrutiny and mistrust that currently surrounds the world of cryptocurrencies, but the safety of our clients and their assets is the highest priority.

The Bitpanda Group diligently follows European laws and regulations, and Bitpanda GmbH is a registered Virtual Asset Service Provider (VASP) with the Austrian, French, Spanish, Italian, Czech and Swedish financial authorities.

Bitpanda Payments GmbH holds a payment service provider license under PSD2, recently becoming an Electronic Money Institute and Bitpanda Financial Services GmbH holds a MiFID II investment firm license with strict user verification processes that fully comply with the AML5.

Bitpanda also operates in accordance with the EU General Data Protection Regulation (GDPR) with strict security measures that meet high international security standards.

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