Coinbase entered the derivatives business for the first time last month, while FTX launched an institutional trading platform in March this year. ![]() Retail investors comprise around 95% of Coinbase’s transaction revenue, although institutions account for most of its trading volume, according to its latest quarterly filing.įTX is best-known for catering to more sophisticated traders through its derivatives offering, which makes up the majority of its volume - a natural fit for the exchange given its founder and chief executive Sam Bankman-Fried’s background working at a quant hedge fund. The three crypto giants all have different established customer bases and are trying to steal each other’s market share. Now, sensing Coinbase’s moment of weakness, the two largest crypto exchanges in the world by volume (Coinbase is third globally) - Binance and FTX - are hoping to seize their opportunity stateside. Its competitors, though, have been lying in wait for their moment to close in on the U.S. ![]() The exchange got over its skis quicker than even Coinbase itself probably imagined, a point evidenced by its decision to rescind job offers last month from candidates who had already accepted them. Its trading volumes and number of monthly transacting users were both down from Q4 last year - bad news for a company that depends heavily on transaction fees for its revenue. The company posted a $430 million loss in the first quarter of 2022, underperforming Wall Street analysts’ expectations. But as the going gets tough in the crypto markets, the company seems to be fumbling the bag, leaving it vulnerable to competition.Ĭoinbase’s stock price is down nearly 80% from where it started the year and it recently made headlines for laying off one-fifth of its staff. The scope of Mazars’ investigation included customers’ spot, options, futures, margin, loan, funding, and earn accounts for BTC and wrapped BTC (wBTC) that were held on the Bitcoin, Ethereum, BNB Chain, and Binance Smart Chain networks.As the largest publicly traded crypto exchange in the United States, Coinbase has become something of a household name. On the same day, financial audit form Mazars published a document that confirmed Binance’s customer BTC reserves were 101% overcollateralized. Customers who maintain a higher 30-day trading volumes will be able to qualify for even greater fee discounts. The company will also offer additional trading fee discounts on all other trades, when the fee is payed with BNB tokens, as well as simplify its fee schedule starting January 2023. Now, more than ever, it is critical that platforms operate with users’ interests first.” “By eliminating fees first on BTC and now ETH, we are further cementing our position as the low fee leader in crypto, raising awareness for the high fees consumers are paying on other platforms, and helping to restore trust in the greater ecosystem. The CEO and president of Binance.US, Brian Shroder, said in a statement: ![]() The zero-fee trading model was first launched back in June, when the exchange eliminated its Bitcoin (BTC) trading fees in an effort to attract more customers to its platform. arm of popular crypto exchange Binance has expanded its zero-fee program to include spot trading for Ether (ETH) for all of its customers, the company said in a blog post on 7 December.Īccording to the announcement, new and existing users of Binance.US will no longer pay trading fees for four ETH trading pairs, including ETH/USD, ETH/USDT, ETH/USDC, and ETH/BUSD.
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