GateToken, commonly referred to as GT, is the native cryptocurrency of the Gate.io cryptocurrency exchange. With crypto news moving at lightning speed these days, it’s no surprise that GateToken (GT) has flown under the radar for many. However, for those in the know, GT presents some interesting opportunities. So in this article we’ll explore what GateToken is, how it works, and whether it has a future in the rapidly evolving crypto space.
What is the purpose of GateToken (GT)?
GateToken was created by the founders of Gate.io as a utility token to be used on their centralized exchange platform. Some of the main uses of GT include:
- Reduced trading fees – Holders of GT can receive discounted trading fees when paying with GT on Gate.io. The more GT held, the higher the discount tier.
- Buy Premium Features – Advanced order types and other premium features on Gate.io require holding a minimum amount of GT.
- Voting power – GT holders can vote on proposed exchange initiatives and help steer the future development of Gate.io.
- Participate in IEOs – New crypto project token launches, also known as Initial Exchange Offerings (IEOs), can sometimes require a small amount of GT to participate.
GT is intended to be used as an internal currency and governance token within the Gate.io exchange ecosystem. Thanks to services like EXEcrypto, you can stay up to date with all crypto news in seconds.
How does GateToken (GT) work?
GT uses a Proof-of-Stake consensus model where those staking their coins are able to validate transactions and receive rewards in the process. This encourages users to lock up their coins for set periods of time, reducing supply and volatility. The more GT staked, the greater the chances of being selected to validate a block and collect the rewards.
GT started with a supply of 1 billion coins, of which 136 million remain in circulation today after multiple token burns by Gate.io. A portion of the exchange’s profits are dedicated monthly to buy back and burn GT tokens, further reducing supply over time. This buy-and-burn mechanism aims to increase scarcity and support the price of the coin.
Does GateToken (GT) have a future?
As the native cryptocurrency of a leading crypto exchange, GT has strong fundamental utility that differentiates it from many other coins. With ongoing development of the GateChain blockchain, expansion of the Gate.io platform, and a deflationary token model, GT appears poised for future appreciation.
Its use cases for paying fees, staking rewards and facilitating cross-chain liquidity provide innate demand drivers. Additionally, regular GT token burns by the exchange consolidating holders and incentives long-term vision. With continued growth of the overall cryptocurrency market, GT stands to benefit greatly as a foundational project token.
When GateToken (GT) launched?
GT was initially launched in 2019 and enhanced to function as Gate.io’s utility token on March 2nd, 2020. Though GT existed prior for a few years powering the GateChain network, its integration with the exchange gave it significantly more utility and exposure. Over the past few years, development has continued at a rapid pace expanding GT’s applications.
Is GateToken (GT) a scam?
Considering Gate.io has been a leading exchange since its founding in 2013 and GateChain has hundreds of thousands of addresses and billions in transaction volume, it would be extremely unlikely GT is a scam at this stage. The project also has a strong community of supporters and developments are clearly progressing.
While nothing is impossible in the crypto universe, most signs point to GT and its parent companies being fully legitimate endeavors. As with any investment, do your own research – but GT appears to have a very real use case powering two large ecosystem players in GateChain and Gate.io.
Is it safe to invest in GateToken (GT)?
Any cryptocurrency investment carries risks, so one should only allocate what they can afford to lose. However, GT compares favorably to many other coins from a risk perspective given its ties to established companies which provide a layer of reassurance absent with more speculative plays.
As long as Gate.io continues growing its business and GateChain sees ongoing development, demand for GT seems probable long-term. Diversifying investments across uncorrelated assets also hedges some project-specific risks. For safety, only purchase from trusted major exchanges and store tokens in a secure personal wallet.
Is GateToken (GT) worth it? GT Price 2023
Considering its multiple utility applications and regular token burn reducing overall supply, GT appears positioned for price appreciation over the long run. The coin traded just below $1 in early 2020 but hit an all-time high over $10 in May 2021, showing enormous potential upside.
Moving forward, macro factors like BTC price trends will impact all cryptos. But GT’s fundamentals differentiate it, and increased adoption of its parent platforms could drive significant demand. Even conservative forecasts project GT reaching $4-7 by late 2023 and potentially $10-15 within a few years if momentum continues building. For a longer term hold, GT seems a worthwhile crypto investment.
Where to buy GateToken (GT)?
The native cryptocurrency of Gate.io, the best place to purchase GT is unsurprisingly on Gate.io itself. The exchange offers deep liquidity for the pair and has the highest trading volumes. Users can deposit funds and trade over 400 different coins at competitive rates.
For those wishing to buy GT elsewhere, some other options include exchanges like HTX, Bitkub, Bitfinex and Hotcoin Global. Always check trading fees, available payment methods and any other buying restrictions like verification levels required at different venues. Once purchased, tokens can be withdrawn to personal wallets.
How to sell GateToken (GT)?
Selling GT follows a similar process but in reverse. The options remain using the Gate.io exchange with its large order books for optimal liquidity. Users can log in, access their GT wallet, and place a sell order at their desired price. Once filled, funds are instantly deposited back into the linked bank/crypto wallet.
For those holding GT on another exchange where it was purchased, simply navigate to the “Balances” area, find GT in the list, and click “Withdraw”. Enter the amount to sell followed by the wallet address to receive thecoins or stablecoin. Most exchanges process withdrawals within an hour for security.
How to stake GateToken (GT)?
Staking GT earns interested holders passive income rewards while also contributing to the network by validating transactions. On Gate.io, users can lock up their coins for periods like 1-month to receive as high as a 15% annual percentage yield paid daily. Funds remain in the user’s control and can be withdrawn at any time if needed.
Alternatively, desktop and mobile GateToken wallets allow staking directly from the wallet interface by choosing a validator to delegate votes to. Either way, staking is a great way to earn extra yield from an already useful coin like GT.
How to mine GateToken (GT)?
GT uses a Proof-of-Stake consensus model so it cannot be mined through hardware like Proof-of-Work coins. However, it is possible to passively ‘mine’ new GT through stake delegation without needing specialized equipment. This involves delegating your staked coins to a validator node to process transactions and receive a portion of the block rewards.
The best options are staking through the official Gate.io exchange pools or using a GT-compatible wallet to choose your preferred validator. Either method allows participants to earn mining rewards without needing to set up and maintain individual hardware nodes themselves.