Disclaimer: I am a former COSS holder and current CryptalDash holder.



I have always been wondering how valuation of some particular cryptocurrencies can rise so high. For example, most of “utility” tokens in fact do not provide any real value and are just excuses for their creators to run an ICO and raise funds without any responsibility.



There are, however, projects where utility token usage is clear and justified; one of such example is exchange coins. Binance (BNB) is the most famous one — BNB is used to reduce exchange fee, so there is natural demand for this coin and its existence makes sense. Some other exchanges tried to copy this model with limited success: CoinMetro, Quoine, Legolas, Kyber Network and others.



Other ICOs use a different approach — Kucoin Shares (KCS) and COSS do not provide any transactional utility value, but offer some profit sharing, which creates another avenue for the coin demand.



Now, CryptalDash (CRD) project combines both of these approaches. For those who are not familiar with the project, CRD token will be used to reduce exchange fees (as much as 70% reduction on the first year) and at the same time, it allows to get some portion of trading fees back as CRD token; though the latter option is only available for the holders of 1M+ tokens.



Full specifications are stated in the whitepaper:

And this is a table of revenue redistribution model (Lifetime members = users with 1M+ tokens):

Now, these plans are quite ambitious (to achieve 1B of monthly trade volume, exchange must generate 33M of daily volume, and at the time of writing only top 42 exchanges have such volume). But if executed right — it is totally doable, and if we get bitcoin bull within the next year or two, volume across all exchanges expected to raise significantly more than current values.



One should also keep in mind that CryptalDash consists of 2 parts:

Exchange on its own and Exchange aggregator, i.e. it allows to trade on other exchanges through CRD interface and “leech” some volume from the top exchanges, without damaging them (describing model and strategy of CRD is a separate topic which I will cover in separate article later).