The ongoing bear market in the crypto space has put a great deal of companies under pressure, but Binance does not appear to be one of them. In fact, the world’s largest crypto exchange in terms of trading volume appears to be doing the opposite of what other companies are doing in order to survive. Brian Shroder, the chief executive of Binance US, announced that the platform will charge zero trading fees for all Bitcoin transactions. In fact, it announced that they also have plans of adding some other cryptocurrencies to the zero-fee package.
Binance Offering Incentives
Now that Binance US has decided to not charge any trading fee from its clients on Bitcoin transactions, it is following in the footsteps of other crypto trading platforms like Robinhood. The platform had stopped charging any commission on crypto transactions back in 2018.
The CEO said that Binance US’s move to eliminate trading fees for Bitcoin transactions would make it the first crypto exchange in the country to do so because they would be doing this for all clients, regardless of their trading volumes. The executive further added that they were committed to expanding this service to more of their clients.
He said that they wanted their pricing model to be adopted by the industry on a broad scale because it would definitely benefit the crypto ecosystem as well as the rest of the community. Shroder said that they were ready to see the zero-fee step on every platform.
Transforming Fee in the Crypto Industry
The Binance US exchange is trying to use their strategy to transform how the crypto industry adopts fees. With this move, the exchange can help make cryptocurrencies more accessible. Moreover, this development has come at a time when the crypto industry is going through a lot of turmoil and many traders have seen their profits fall.
Giving an interview to Bloomberg, Shroder stated that Binance US would use their new staking service for generating their revenue instead of relying on the fee they charge. The exchange is hoping to grow their user base due to which the crypto staking service has been introduced. They are currently not charging fees for BTC/USD, BTC/USDC, BTC/BUSD and BTC/USDT.
Coinbase Under Pressure
As mentioned earlier, the crypto space is dealing with a bear market and this has brought about a ton of challenges for companies that are operating in the space. These include some prominent crypto exchanges that are offering their services, such as Gemini, Coinbase as well as Crypto.com. These platforms have announced that they are cutting down their workforce because of the current conditions of the market.
The trading fees of the Coinbase exchange is between 0% and 0.50%. It charges some of the largest trading fees in the sector. However, the company’s share price had begun to plunge in the first quarter of 2022 after they incurred a loss of $430 million. The exchange has also seen a drop in the number of users.