Binance Announces Modifications to Zero-Fee Bitcoin Trading Program, Stirring Market Concerns
Summary:
Cryptocurrency exchange Binance plans to modify its zero-fee Bitcoin trading program, potentially leading to a market downturn. The changes will affect the BTC/TUSD spot and margin trading pair, with regular taker fees being implemented based on user VIP levels. However, there will still be no maker fees. This shift could impact the support for TrueUSD (TUSD) stablecoin and potentially incite selloffs in the market. Binance's decision also redirects attention away from TUSD to the lesser-known FDUSD stablecoin.
Cryptocurrency exchange Binance has announced its plans to make changes to its zero-fee Bitcoin trading program starting from September 7th. This decision could potentially result in a significant market downturn, similar to the decline observed when zero-fee trading was discontinued in March. Binance has stated that they will modify zero-fee Bitcoin trading for the BTC/TUSD spot and margin trading pair. Previously, traders enjoyed zero maker and taker fees when trading BTC with TUSD pairs, but now a regular taker fee will be implemented based on the user's VIP level. Nevertheless, there will still be no maker fees for Bitcoin trades on the BTC/TUSD spot and margin trading pair. The conclusion of this program may suggest a decrease in support for the TrueUSD stablecoin due to various concerns. However, users will retain the privilege of zero maker and taker fees when engaging in Bitcoin trading with the First Digital USD spot and margin trading pair. This adjustment could inadvertently lead to another round of selloffs in the market. The BTC/TUSD and BTC/USDT pairs are the most frequently traded for Bitcoin, accounting for 11% and 7% respectively, according to CoinMarketCap. The trading volume of Tether pairs saw a significant decline after Binance stopped supporting Binance USD and made TUSD the exclusive trading pair for zero-fee Bitcoin trading. Once again, Binance is shifting focus away from TUSD to the lesser-known FDUSD stablecoin. Notably, FDUSD does not rank among the top 10 Bitcoin pairs in terms of trading volume, with a market capitalization of $324 million.
Published At
8/24/2023 1:59:02 PM
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