Exchange platform tokens like BNB, OKB, and BGB have become integral parts of the crypto ecosystem. They offer various utilities, from fee discounts to exclusive access to token sales. However, valuing these assets requires a nuanced approach beyond simplistic metrics. This article explores the core factors that drive their value and offers a comparative look at three major players.
Understanding the Two-Stage Growth Model
A common mistake in evaluating platform tokens is over-relying on metrics like Price-to-Earnings (PE). This approach treats buybacks, dividends, launchpad access, and fee discounts as dividends, suggesting value should correlate directly with these payouts. However, this one-stage model is flawed because it ignores growth potential.
A more accurate framework is the two-stage growth model. It accounts not only for current income but also for future growth rates. Given the cyclical nature of crypto markets—alternating between bull and bear phases—growth potential often plays a decisive role in long-term valuation.
In essence, a platform token’s value depends on:
- Its current value-capture mechanisms
- Its potential for future growth
The Key Driver During Bull Markets
What fuels growth during a bull market? The answer is new assets.
Exchange revenues come primarily from trading fees and earning products tied to assets under management. Significant profit expansion doesn’t occur merely because Bitcoin is rising—it happens when new, high-demand assets enter the market.
For example:
- In 2017, the driver was ICOs.
- In 2020–2021, it was DeFi summer, GameFi, and new Layer-1 chains.
During these periods, exchanges that successfully attract innovative projects gain a substantial advantage. More quality listings draw more users, which in turn attracts more projects—creating a powerful growth loop.
Binance’s success with BNB is a prime example. Through Binance Labs and the Binance Smart Chain (BSC), Binance built a strong ecosystem of early-stage projects and capital-efficient blockchains. This strategy allowed them to capture a significant share of new asset launches, driving both trading volume and the utility of BNB.
Other exchanges, like FTX (with Solana and Alameda Research) and Huobi, attempted similar strategies with varying degrees of success. OKX, by comparison, was slower to adopt this aggressive approach in the same period.
👉 Explore more strategies on platform token investments
Challenges in Bear Markets and Regulatory Pressure
Inevitably, high growth slows. Larger organizations face efficiency challenges, increased regulatory scrutiny, and market saturation.
One useful framework is the "impossible triangle" for exchanges. They must balance:
- Compliance
- Scale
- Profitability
It’s difficult to excel in all three simultaneously. For instance, pursuing scale and profitability may require operating in regulatory gray areas. As exchanges grow, they often face greater regulatory pressure—as seen with Binance recently.
Additionally, during bear markets, exchanges deal with:
- Reduced trading activity
- Lower asset prices
- Declining user engagement
Despite these pressures, well-established exchanges like Binance retain their fundamental strengths—liquidity, brand recognition, and robust ecosystems—even amid temporary setbacks.
Offensive vs. Defensive Strategies
Exchanges adopt different strategies based on market conditions and their competitive position.
Binance has pursued an offensive strategy: aggressively investing in new assets, expanding into new markets, and educating new users. This reflects a focus on capturing growth beyond the core crypto audience.
OKX, in contrast, adopted a defensive strategy during the 2022–2023 bear market. Key initiatives included:
- Fewer new token listings
- High-yield savings products and structured offerings to retain users
- Integrating CeFi and DeFi through MPC wallets, AA wallets, and NFT marketplaces
This approach helped OKX strengthen user loyalty and improve platform stability during turbulent times—factors that positively influenced OKB’s market performance.
Are Platform Tokens Worth Holding?
Based on current fundamentals, here’s an assessment of three major platform tokens:
BNB
Despite regulatory and growth challenges, Binance remains the market leader. BNB benefits from the deepest liquidity, the strongest profitability, and ongoing innovations like opBNB and Greenfield. Its ecosystem advantage is still significant.
OKB
OKX executed a successful defensive strategy, improving trust and user retention. This foundation allows flexibility to shift toward growth when market conditions improve.
BGB
Bitget’s token stands out for maintaining an aggressive growth stance even during the bear market. Its ecosystem includes Bitkeep Wallet, Foresight News, and Foresight Ventures, providing横向 diversification.
That said, there are reasons for caution:
- Valuations are still rich
- Circulating supply is often unclear due to team allocations, buybacks, and token burns
- Platform tokens typically peak during the mid-phase of a bull market, not at the very beginning
Timing is critical. Buying during a deep bear market may offer better risk-adjusted returns than buying during early bull momentum.
👉 View real-time market data and analysis
Frequently Asked Questions
What gives platform tokens their value?
Platform tokens derive value from their utility—such as trading fee discounts, participation in token sales, and staking rewards—as well as the growth potential of their parent exchange.
How does a bull market affect platform tokens?
During bull markets, new asset launches drive trading volume and revenue for exchanges. Tokens tied to exchanges with strong ecosystems and listing momentum often outperform.
Can platform tokens be valued using traditional metrics?
Traditional metrics like PE ratios are often insufficient because they don’t account for growth potential, tokenomics, and market cycles. A two-stage model that includes growth estimates is more appropriate.
What are the risks of investing in platform tokens?
Risks include regulatory changes, exchange solvency issues, ecosystem decline, and market cyclicality. It’s important to assess both financial and non-financial factors.
How do defensive and offensive strategies impact token performance?
Defensive strategies focus on user retention and stability during downturns, while offensive strategies aim for growth through new listings and expansions. Each can be effective depending on market conditions.
Is now a good time to invest in platform tokens?
It depends on market cycle positioning, valuation levels, and risk appetite. During bear markets, tokens may be undervalued, but they might not rally until new asset activity increases.