Binance Modifying Zero-Fee Bitcoin Trading Program
On Aug. 24, cryptocurrency exchange Binance announced its plan to modify its zero-fee Bitcoin (BTC) trading program, which will take effect on Sept. 7. This could potentially cause a significant market downturn, similar to the 90% trading volume drop seen after Binance discontinued its zero-fee trading in March.
In a statement, Binance stated that it will be changing the zero-fee Bitcoin trading for the BTC/TUSD spot and margin trading pair. Before this, users were able to trade BTC with TUSD pairs without any maker or taker fees. However, from now on, taker fees will be implemented according to the user’s VIP level, yet there will still be no maker fees when trading Bitcoin on the BTC/TUSD spot and margin trading pair.
The discontinuation of the program could be an indication of decreased support for the TrueUSD (TUSD) stablecoin due to various issues. Nevertheless, users will still have the privilege of zero maker and taker fees when engaging in Bitcoin trading on the First Digital USD (FDUSD) spot and margin trading pair.
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The adjustment could potentially cause another wave of selloffs in the stock market.
CoinMarketCap records that the BTC/TUSD and BTC/USDT pairs are the most traded for Bitcoin, accounting for 11% and 7%, respectively. After Binance stopped supporting Binance USD (BUSD) and made TUSD the only pair for zero-fee Bitcoin trading, the trading volume in Tether (USDT) pairs experienced a sharp decline.
Again, the exchange is shifting its attention away from the widely traded TUSD to the lesser-known FDUSD stablecoin. Notably, FDUSD does not make it to the list of the top 10 Bitcoin pairs by trading volume, with its market capitalization estimated at $324 million.
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