Binance Volume Spikes Due to Zero Fee Trading Promo
The trading volume of Binance – the biggest cryptocurrency exchange – surged right after its global zero trading fee policy went live last Friday, July 8th, which coincided with Binance’s fifth anniversary.
Last Wednesday, Binance announced that the trading fees worldwide will be eliminated across 13 stablecoin and fiat combinations including BTC/USDT, BTC/USDC and BTC/BUSD. Upon implementation, the trading at the exchange spiked with bitcoin/tether (USDT) spot volume going up to 320,000 coins within hours. These high numbers weren’t seen in the exchange since March 2020.
A day after the launch of the zero trading fee, CZ asked Binance users in a Twitter poll, while pointing out the associated risks, if they want the crypto exchange to maintain its zero transaction-free service for bitcoin.
As of writing, 65.5% of the current more than 47,000 votes want Binance to retain the free transactions regardless of the inherent risks.
Although zero trading fees offer numerous advantages, CZ mentioned that its disadvantages include wash trading. A wash trade occurs when an investor buys and sells an asset for the purpose of artificially inflating the price. According to CZ, customers can use wash trading to access the exchange’s VIP tier and then utilize the VIP tiers to gain lower trading fees.
To address this concern, he stated that Binance will be required to implement several safety procedures, including the use of artificial intelligence to detect illegal trades.
Recently, to onboard more people into the platform, Binance tapped Khaby Lame, TikTok’s most-followed content creator, to become its brand ambassador to increase Web 3 and crypto awareness and adoption globally. (Read more: Binance Taps Tiktok Star Khaby Lame as Brand Ambassador)
Last month, CZ visited the Philippines to express Binance’s desire to acquire the virtual assets service provider (VASP) license and the e-money issuer (EMI) license from the Bangko Sentral ng Pilipinas (BSP). Binance is also looking forward to providing scholarships to Filipino students. (Read more: CZ: Binance Philippines Plans to Acquire a Crypto Exchange VASP License from the BSP)
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