Binance US, the US division of the world’s largest cryptocurrency exchange, has announced a new pricing model that offers zero fees for four Bitcoin trading pairs, including BTC/USD, BTC/USDT, BTC/USDC, and BTC/BUSD. The crypto giant becomes the first US exchange to provide such a service to its users.
- Waiving such trading fees, according to Binance US CEO Brian Schroeder, revolutionize how the industry is approaching trading costs and increasing the availability of cryptocurrencies.
- After the news, shares of Coinbase and Robinhood fell nearly 10% and 1%. Their share prices have fallen by more than 85% and 90%, respectively, compared to ATH.
- As prominent competitors to Binance in the US, both exchanges recently announced staff cuts, with Coinbase laying off 18% of their staff and Robinhood laying off 9%.
- The Binance US announcement comes at a time when trading volume on exchanges has fallen heavily amid a broader market slowdown. The company reportedly said “the best time to introduce zero fees is now” as the industry struggles to find a way out of the general bearish mood.
- The reduction in bitcoin trading fees against USD-pegged stablecoins means deducting a portion of the company’s main revenue stream.
- The US-based giant called the new measure a test of such a zero-fee model, noting that if users approve it, the company will apply a similar policy to other assets and pairs in the future. The forgone income – relatively small – won’t impact the company much as it has over 100 other listed tokens that require trading fees, Binance US added.
- After raising $200 million in April from venture capitalists and crypto firms, the exchange reached a valuation of $4.5 billion.
Binance Free $100 (Exclusive): Sign up and get $100 free and 10% off Binance Futures fees for the first month. (terms).
sign up and enter the code POTATO50 to get up to $7,000 on your deposits.
Credit : cryptopotato.com