According to research conducted by Digital Asset Research, the very raison d’être of many crypto coins and tokens may be in question. In a report circulated with paid members of the group, the usage of the ZRX token on the 0x decentralized exchange platform was examined.
Quite remarkably, despite the primary purpose of the ZRX token being to pay for the exchange of various ERC-20 tokens, the investigation highlighted that only a tiny percentage of the total transaction fees paid during the platform’s existence were made using the designated token. This forces the question: Do decentralised applications even need their own token?
During the ICO boom of 2017, many startups launched their own platforms and generated immense stacks of various digital assets (mostly Ethereum) from investors hoping to get in early on the next big thing. These projects, although disparate in announced intentions, all had one thing in common – a token.