Users of Binance vote in favour of maintaining free transactions
According to a recent Twitter survey conducted by CEO Changpeng Zhao, Binance customers want the exchange to keep its transaction-free service for bitcoin.
Zhao questioned if customers wanted Binance to retain zero-fee trading while highlighting the hazards involved.
At the time of publication, 66 percent of the more than 39,000 respondents want the company to continue offering free transactions despite the associated hazards.
This is hardly unexpected given that crypto dealers would typically want to eliminate transaction costs. While free transactions may attract more traders to Binance, they may also have a negative impact on company earnings. By trading volume, Binance is the biggest cryptocurrency exchange in the world.
Zero transaction costs and related hazards
CZ noted that despite the obvious benefits of zero-fee trading, its downsides include wash trading. Zhao added that consumers may attain the exchange’s VIP category via wash trading. Consequently, use the VIP levels to get reduced trading expenses.
A trader engages in wash trading when they deal with another wallet under their control. Typically, this is an effort to manipulate the market and create the appearance of demand.
Zhao said that the implementation of this service would need a number of safety steps from Binance. This approach uses artificial intelligence to identify unlawful transactions.
Divergent sentiments among investors
Oliver Bell, a creator of the Watch2Earn platform XCAD Network, has applauded the development. If granted by Binance, the proposal will attract and encourage more users to join the business, according to him. Adding that “the benefits outweigh the drawbacks.”
However, another Twitter user with the handle @VolatilityRob queried what impact zero-fee trading would have on the market if a “major market power” decided to unload its assets.