Binance US office confirmed expanding its zero-fees model to exempt Ethereum (ETH) from trading fees. Chief executive of US operations, Brian Shroder, confirmed the expansion of the zero-free model. The announcement disclosed that Binance US users could immediately trade freely. The exemption of trading fees will benefit 4 Ether spot pairs, including ETH/BUSD, ETH/USDT, ETH/USDC, and ETH/USD.
The announcement conveyed via the official US exchange blog revealed the elimination of gas fees on Ethereum-based transactions executed via its Buy&Sell feature. The confirmatory tweet on December 7 indicated the expansion of the June 2022 decision to introduce no-commission trading for the Bitcoin spot transactions.
Eliminating Commission-Based Trading
The June announcement indicated Binance US replicated Robinhood’s footsteps in 2018 to eliminate commission-based trading fees for crypto. Binance US scrapped trading fees for all BTC spot market trading, including BTC/BUSD, BTC/USD, BTC/USDC, and BTC/USDT.
Shroder restated that zero-commission trading is available to American crypto traders. He added that Binance US operates autonomously, bearing the same logo as the global Binance exchange.
Also read:Shroder lauded the elimination of trading fees on ETH and BTC transactions as a strategic decision to cement the exchange’s position as the low leader in the crypto space. He challenged other crypto exchange platforms to emulate Binance US by prioritizing users’ interests in their operations. Schroder, who serves as Binance US president, reiterated the exchange objective to reignite pricing competition and restore users’ trust in the broader crypto ecosystem.
Battle for Zero Transaction Fees
Binance US’s chief executive admitted the race to lower transaction fees is informed by the realization that higher costs are scaring potential users from the exchanges. He confessed that exchanges are crucial actors in facilitating crypto adoption. Consequently, embracing zero-fee pricing and low transfer fees encourages transactions.
Shroder analogized that users will avoid and limit digital assets transfers to avoid eroding their wealth with higher fees. It implies costly transfers will scare away millions of likely users from crypto uptake.
Shroder observed that exchanges embracing the zero-fee pricing approach could realize earnings through spreads. The resulting trading volume in no-fee transactions yields alternative sources of earnings for Binance US through the spread. Such arises from the variance between the bid and ask price in ETH and BTC trading pairs.
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