Binance.US, the US partner of the biggest digital asset exchange in the world, following the failure of FTX.US, is reducing its trading costs to win back customers after that exchange went bankrupt.
Following an identical move with Bitcoin in June, the exchange will now provide zero-fee trading on four of the most actively traded market pairings for Ethereum. According to a statement published on Binance’s website, the firm stated that it would reduce its fees by 25% across all trading pairs when the platform token Binance Coin is used to pay for the charges. In addition, it will provide volume-based discounts.
The move comes as crypto exchanges compete for their customer’s funds in the wake of the collapse of FTX. According to statistics provided by Glassnode, within the last 30 days, a record amount of Bitcoin was transferred off of exchanges. This comes when consumers who have funds stored on online platforms are becoming more anxious about the possibility of additional contagion in the sector.
According to certain estimates provided by market analysts, some withdrawals might be attributed to investors choosing to self-custody their tokens. The primary purpose of Binance Coin, also known as BNB, is to pay transaction fees on the Binance exchange. Crypto trading platforms often issue these currencies to raise funds and increase trading volume by providing fee reductions for payments made using the tokens.
President and CEO of Binance.US also shared his views on Twitter on reduction of trading cost by Binance. According to him by removing these costs, Binance continues solidifying its position as the crypto industry’s low-fee leader, introducing increased price competition and helping rebuild confidence in the larger ecosystem. It is now more important than ever that platforms prioritise the interests of their users.
By eliminating these fees, we continue to cement our position as the low fee leader in crypto, bringing greater pricing competition & helping to restore trust in the broader ecosystem.
Now, more than ever, it's critical that platforms operate with users’ interests first.
— Brian Shroder (@BrianShroder) December 7, 2022