Binance Users Support Fee-Free Trading Despite CZ Washout Trading Issues
CZ is open to implementing changes regardless of the challenges a new system would bring, as he said: “Let's see what the poll says. We listen to our users.”
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Traditional and crypto investors consider trading fees to be one of the biggest liabilities when it comes to investing on exchanges. It's no wonder, then, that when Changpeng "CZ" Zhao, the founder and CEO of Binance, asked investors about their interest in trading on the fee-free crypto exchange, the answer was a resounding yes despite the risks. inherent underlined by the entrepreneur.
Binance is the largest crypto exchange, outperforming its closest competitor FTX by 10 times in trading volume. Zhao, known for implementing features based on community feedback, reached out to Twitter to gauge investor sentiment regarding the complete removal of trading fees.
@binance 0 fee trading creates some issues, trading washout, VIP levels, etc. A thread
Do you still want it? 1/4.
— CZ Binance (@cz_binance) July 8, 2022While fee-free trading might seem ideal for investors, CZ pointed out some of the issues he might come up with in the process, one of them being shadow trading. Wash Trading, in which a user makes a series of buys and sells to manipulate market activity, can be used to climb VIP levels on Binance.
Additionally, CZ said that bringing fee-free trading to as many people as possible would require Binance to have a lot of safeguards in place, including detection tools to identify illegitimate transactions. Each VIP level is linked to certain trading benefits, including lower trading fees. As a result, professional poker player Brian Rast asked "So if there are no fees, why do you need VIP levels?"
More than 30,600 investors voted CZ's poll at the time of writing - with around 65.5% inclined to trade with...
CZ is open to implementing changes regardless of the challenges a new system would bring, as he said: “Let's see what the poll says. We listen to our users.”
New
Traditional and crypto investors consider trading fees to be one of the biggest liabilities when it comes to investing on exchanges. It's no wonder, then, that when Changpeng "CZ" Zhao, the founder and CEO of Binance, asked investors about their interest in trading on the fee-free crypto exchange, the answer was a resounding yes despite the risks. inherent underlined by the entrepreneur.
Binance is the largest crypto exchange, outperforming its closest competitor FTX by 10 times in trading volume. Zhao, known for implementing features based on community feedback, reached out to Twitter to gauge investor sentiment regarding the complete removal of trading fees.
@binance 0 fee trading creates some issues, trading washout, VIP levels, etc. A thread
Do you still want it? 1/4.
— CZ Binance (@cz_binance) July 8, 2022While fee-free trading might seem ideal for investors, CZ pointed out some of the issues he might come up with in the process, one of them being shadow trading. Wash Trading, in which a user makes a series of buys and sells to manipulate market activity, can be used to climb VIP levels on Binance.
Additionally, CZ said that bringing fee-free trading to as many people as possible would require Binance to have a lot of safeguards in place, including detection tools to identify illegitimate transactions. Each VIP level is linked to certain trading benefits, including lower trading fees. As a result, professional poker player Brian Rast asked "So if there are no fees, why do you need VIP levels?"
More than 30,600 investors voted CZ's poll at the time of writing - with around 65.5% inclined to trade with...
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