Why do some cryptocurrency trading platforms require users to use the platform's native crypto token to access the platform?

External question — Personal Finance Stack Exchange Author: Franck Dernoncourt Original post: https://money.stackexchange.com/questions/153606 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I read on CNBC : FTT, the native crypto token that gives users access to the FTX trading platform. Why do some cryptocurrency trading platforms require users to use the platform's native crypto token to access the platform?

External answer — Personal Finance Stack Exchange Author: user3404 Original post: https://money.stackexchange.com/a/153607 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I refer you to Sam Bankman-Fried's interview with the Odd Lots Podcast . You need some gimmick to pull in the rubes. Note: FTX doesn't require users to use their token, but they give discounts on fees to those users who do.

External answer — Personal Finance Stack Exchange Author: Tim Miller Original post: https://money.stackexchange.com/a/153632 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. There are a few reasons why platforms might require users to use their native crypto tokens. One reason is that it can help to create a more seamless experience for users. For example, if a platform requires users to use its native token to access the platform, the platform can more easily keep track of user activity and make sure that users are adhering to the platform's rules and regulations. Additionally, using a platform's native token can help to create a more loyal user base, as users who hold the token may be more likely to use the platform regularly and to recommend the platform to others.