Binance US — the US-based division of the world’s largest crypto exchange — announced a new pricing model that includes no fees for four Bitcoin-Trading pairs offers including BTC/USD, BTC/USDT, BTC/USDC and BTC/BUSD. The crypto giant thus becomes the first American exchange to provide such a service to its users.
- According to Brian Shroder, CEO of Binance US, the elimination of such trading fees is intended to revolutionize the way the industry deals with trading costs and access to cryptocurrencies to enhance.
- Following the news, shares of Coinbase and Robinhood fell nearly 10% and 1%, respectively. Their share prices are down over 85% and 90% respectively against ATHs.
- As prominent competitors to Binance US, both exchanges recently announced staff cuts, with Coinbase laying off 18% of its employees and Robinhood reducing its workforce by 9%.
- Binance US’s announcement comes at a time when trading volume on exchanges has plummeted amid a broader market slowdown. The company reportedly said “there is no better time to introduce zero fees than now” as the industry struggles to find a way out of the general bear market.
- The reduction in fees for trading Bitcoin against USD-pegged stablecoins means a chunk of the company’s main source of income is being withdrawn.
- The US-based giant outlined the new measure as a test of such a zero-fees model, commenting that if it’s well received by users, the company will roll out similar policies for other assets and pairs in the future. The lost revenue – relatively small – would not affect the company much as it has over 100 other exchange-traded tokens that require trading fees, Binance US added.
- After raising $200 million from a mix of VCs and crypto-native firms in April, the exchange reached a valuation of $4.5 billion.
Source: Crypto News Deutsch