world’s largest cryptocurrency Trading volume on the exchange Binance spiked as it switched to a zero fee policy on various trading pairs.
Volumes of Bitcoin Trading Pairs on Binance Peak
On Friday, the world’s largest crypto exchange by volume, Binance, introduced a worldwide zero transaction fee for 13 crypto pairs. This move caused an explosion in trading on the stock market and Bitcoin/Tether spot volume increased to 320,000 coins within hours. The stock market has not seen such high volume in even a full day since March 2020.
Binance CEO Changpeng Zhao attributed this increase to people trying to earn VIP tiers through high trading volumes. In his statement, the CEO stated that they will exclude BTC trading transactions from the VIP tier calculation:
“We will remove all incentives to engage in misleading transactions. Detailed explanation will be made shortly.”
These deceptive transactions, called “wash trading”, are the attempts by investors to buy and sell with the aim of artificially increasing the price of an asset.
Think this is due to zero fees and people trying to gain VIP tiers. We will exclude BTC trading from VIP calculations. Remove all incentives to wash trade. Announcement with details coming shortly. https://t.co/5wm4uPAudX
— CZ 🔶 Binance (@cz_binance) July 8, 2022
The exchange made its zero-fee announcement Wednesday, and the plan went into effect on Friday, the company’s fifth anniversary.
With the bear market revealing itself, exchanges like Binance began to look for other ways to attract users to keep the market healthy.
However, due to the cryptocurrency winter, some exchanges have tried to lay off their employees and reject new applications they have accepted in order to cut costs.
*Not investment advice.