Cryptocurrency exchange Binance.US, Coinbase’s competitor, announced that it will reduce its clients’ real-time trading fees, sending Coinbase shares down 10%.
Binance America, the US subsidiary of the world’s largest cryptocurrency exchange by trading volume, has stated that it will allow users to make instant trades of bitcoin against the US dollar and stablecoins such as USDC and Binance without having to pay instant trading fees, This pushed Coinbase’s stock down by 9.7%, while Robin Hood’s stock fell by less than 1%.
The move from Binance comes during a long period of decline and crash suffered by cryptocurrencies, which are part of a broader sell-off of volatile assets in the market that has extended throughout the year.
At the end of last week, Bitcoin recorded a new low during 2022 with reaching below the $18,000 level for the first time since December 2020, and trading volumes on cryptocurrency exchanges tumbled due to the continuous declines in cryptocurrency prices. Read more [Coinbase Stock Plummets With Staff Layoffs and Bitcoin Crash] and [Binance crypto exchange isn’t authorized to operate in Italy].
Coinbase previously relied heavily on trading volume to generate revenue, but in recent months it has been seeking to diversify its revenue sources, and is currently piloting a customer subscription service called Coinbase One, which will allow clients to access free-of-charge trades of up to Up to $10,000 of monthly transactions.
The phenomenon of no-fee trading, first introduced by Robin Hood, started making an impact in the retail investment world several years ago, when major stockbrokers started relying on commission-free online trading. Read More [Coinbase Employment Suspension is Extended].