Binance users want no trading fee despite several inherent risks

When the crypto and traditional investors consider trading fees as one of the biggest liabilities while trading on exchange platforms, Binance came up with its zero-fee solution a few days back.

However, there are several inherent risks pointed out by the founder and CEO of the exchange, who asked users whether they wanted the exchange to continue with no fees. Despite the noted risks, users are voting in favor of zero fees.

The biggest crypto exchange in the world, Binance, has seen around $3 billion in bitcoin purchases within two hours yesterday. According to CZ, this is because of the zero-fee offering, which caused some customers to use fake transactions to advance to the VIP levels. BTC transactions will no longer be taken into account for determining VIP status.

0 fee trading @binance creates a few problems, wash trading, VIP tiers, etc. A thread 👇

Do you still want it? 😄 1/4.

— CZ 🔶 BNB (@cz_binance) July 8, 2022

While zero-fee trading may appear to be the best option for investors, CZ highlighted other possible problems that could arise, including wash trading. To advance through the VIP tiers on Binance, a user might use wash trading, which involves making a series of buys and sales to manipulate market activity.

Binance will bring safety measures

Furthermore, CZ noted that in order to make 0-fee trading widely available, Binance would need to put in place multiple security measures, including technologies for identifying malicious trades. Lower trading fees are one of the benefits associated with each VIP tier. So why do you need VIP tiers if there are no fees, Brian Rast, a renowned poker player, questioned.

Around 65.5 percent of the over 32,000 investors who participated in CZ’s survey at the time of writing preferred trading with no fees. CZ is willing to make the adjustments despite the difficulties a new system would present:

“Let’s see what the poll says. We listen to our users.”

As TheCoinRise reported in late June, Binance US announced zero trading fees for Bitcoin spot pairs. As per the announcement, the exchange removed trading fees from Bitcoin trading pairs BTC/USD, BTC/USDT, BTC/USDC, and BTC/BUSD.