Binance U.S. Challenges Competition by Erasing Bitcoin (BTC) Trading Fees
As the crypto industry continues lick its wounds after a harsh crypto winter, Binance U.S., the subsidiary of Binance in the United States, just announced they will offer their customers fee-free Bitcoin (BTC) trading.
The best #crypto platform for low fees just got better. #BinanceUS is the first major platform to offer zero-fee #bitcoin trades for BTC/USD, BTC/USDT, BTC/USDC & BTC/BUSD spot pairs, for all users without trading volume requirements.
— Binance.US (@BinanceUS) June 22, 2022
For now, the zero-fee trading will be available on four Bitcoin (BTC) spot market pairs. The no-fee market pairs are as follows:
Later on, the company also plans to introduce zero-fee trading on other cryptocurrencies as well. Binance U.S. CEO Brian Shroder wants to see this kind of a pricing model being adopted in the industry: ‘We hope our pricing model sees broader industry adoption over time, because that would have a positive impact on the ecosystem and market participants overall. We are happy to lead the race to zero fees everywhere’.
Are Crypto Exchanges Becoming Less Greedy?
As the Fear & Greed Index still illustrates that the crypto community is in extreme fear, a bold move like this might shape the future of the crypto industry. From a trader’s perspective, zero-fee Bitcoin trading is great news and might lead the general public sentiment from bearish to bullish, as the opportunity to trade without any fees wouldn’t probably occur in stable market conditions.
Crypto Competition Benefits the User
For competitors of Binance U.S., this sets a challenging barrier. For instance, Coinbase charges up to 0.50%, FTX.US charges 0.20% and Kraken charges 0.26%. Now, with Binance U.S. erasing BTC trading fees, some of their rivals might do the same. However, Coinbase’s situation is deeply controversial, as rumors surfaced on social media that the company might be heading to bankruptcy. Moreover, Coinbase’s shares dropped by nearly 10% this Wednesday.
Brian Shroder also explained that ‘this is an opportunity to revolutionize the way fees are approached in our industry, increase accessibility to crypto, and better support our market and customers in a time of need’.
Will better accessibility and lower fees help the crypto industry switch from these volatile times into a more positive, bullish market? Binance U.S. used the opportunity to shine, but we are still yet to see if the idea of zero BTC trading fees will leave a positive long-term impact on the market.
2/ Crypto is at a pivotal moment and we are never done working for our community. Staking and 0-fee $BTC trading is just the beginning of what we have in store for you. We designed an innovative tiered pricing model, which will go into effect this summer.
— Brian Shroder (@BrianShroder) June 22, 2022