The $COBI Token: A Comprehensive Guide
All the major Bitcoin derivative exchanges out there have their native tokens in circulation. Have you ever wondered how these tokens come about and what are the most common ways for exchanges to distribute their tokens? Well, usually such platforms conduct an initial token distribution, or users earn them as rewards for referring the platform to peers.
However, when it comes to Cobidex, the case is a bit different, to say the least! Cobidex’s native token called Cobi is unique because it is neither airdropped nor presold. Instead, users can earn it by simply using the platform. We got your ears ringing, didn’t we? Well, keep reading to find out what makes Cobi tokens so attractive.
What makes Cobi worth owning?
What makes a token worth owning, or appreciate in value? Well, it is the direct result of the benefits offered through a token that makes it desirable to its users. For example, if a decentralized exchange becomes the first choice for traders, its native token becomes valuable as traders use it to pay for various services on the exchange.
Users can participate in the exchanges’ governance activities using these tokens, increasing the token’s utility. Its value further increases if investors get incentivized for holding them, thereby bringing in more and more enthusiasts.
- Cobi is the Native Token of an Exchange that is The First of its Kind
Cobi token checks off all the requirements to become a valuable token in the future. The primary reason is — it fuels an exchange that will be the first community-owned crypto derivatives trading platform. The existing exchanges for leverage and margin trading are all centralized. Therefore, the services on these platforms are not explicitly developed around the benefits of the traders. Yes, there are benefits, but they are limited. On the other hand, Cobidex will become a traders’-first exchange that will curate all its services in line with its users’ interests.
- Cobi is a Governance Token that Generates Yields
As we discussed, a coin sees possibilities of appreciating value if users find it enticing enough. Cobidex users will receive Cobi tokens as rewards for:
- Trading on the platform
- Referring the exchange’s services to friends and acquaintance
- For staking existing crypto assets
You will find more information on how you earn Cobi tokens through various unique initiatives on the platform here.
All Cobi token holders will eventually earn a share of the exchange’s daily revenue by staking them. When Cobidex transitions to a fully decentralized derivatives exchange, the reward for Community Market Making in the form of daily dividends will come to its full effect.
Plus, the community will have full ownership of the exchange via the token. This means users will oversee and vote on platform updates, interest rates, trading and liquidity options, etc. The benefits that come from owning Cobi will play a role in increasing its value.
Another reason Cobi is attractive to traders is that it helps adjust the debt if synthetic assets’ value decreases. This way, a constant collateralization ratio can be maintained by just holding Cobi tokens.
- Cobi Tokens are Limited in Number
The total supply of Cobi tokens is 4.8 billion which would be distributed to trade miners in 4 stages. Traders will generate 1 Cobi for every $0.05 paid in fees till coin distribution reaches 600 million. After that, trading fees will increase by $0.05 at every stage for 1 Cobi. The supply of Cobi tokens will remain constant even if the demand for them escalates. This will further increase the token’s value. Find more information on Cobi tokenomics here.
To Wrap Things Up
The most important question that comes here is — why should Cobi grow in demand? Firstly, Cobidex traders become Cobi holders by default for using the world’s first community-owned crypto derivatives platform.
Secondly, Cobi is won through trading on the platform, referring Cobidex to peers, and providing liquidity to the exchange. In fact, coins won from referring the platform to contact can be converted to USDT. Finally, users can take part in the platform’s several governance activities via Cobi.
The possibilities of Cobi are immense. Holding Cobi today can mean significant benefits in the future. So, if you are a bitcoin or crypto derivatives trader, would you give Cobidex a shot and claim ownership of its token while they last? So, hurry up now!