America’s premier cryptocurrency exchange is making waves with an enticing offer of zero-fee trading. Yet, this alluring proposition might not be as straightforward as it initially seems. On May 18, the business entity announced noteworthy enhancements to Coinbase One, a premium membership service touting zero trading fees, escalated staking rewards, and priority customer support. The catch? A hefty monthly subscription fee of $30.
A Closer Look at the Fee Model
Coinbase has frequently been the subject of reproach, attracting criticism for some of the industry’s most exorbitant trading fees. However, the lion’s share of the company’s profits emanates from these inflated fees – a clear testament to the robustness of the business model.
For the crypto giants and frequent traders, paying a monthly fee to abolish these trading costs is advantageous. However, those who trade in substantial volumes are less likely to choose Coinbase as their trading platform, favoring decentralized exchanges (DEX) where the fees are considerably lower.
As part of its promotional strategy, Coinbase is offering a 30-day free trial for its new service, featuring priority support. That comes in response to significant criticism leveled at the firm for its lackluster customer support.
In an unexpected move, Coinbase customers now need to pay for prompt responses through support channels. Additional benefits of this service include assistance with crypto tax filing.
Expansion and Partnership Perks
Coinbase announced that it is extending access to Coinbase One to users in the United Kingdom, Germany, and Ireland, alongside the United States. Further sweetening the deal, Coinbase has arranged for unique benefits with partners, including Messari, CoinTracker, and Lemonade.
Despite the buzz, it’s important to note that Coinbase already provides premium accounts. The company has also stated that the zero trading fee offer does not extend to Advanced Trade, Coinbase Pro, or Coinbase Prime.
Financial Impact and Market Repercussions
Despite the promise of zero-fee trading, COIN shares experienced a 1.28% decline, falling to $60.35 in after-hours trading.
Meanwhile, markets have demonstrated a relatively flat trend over the past few months, still reeling from their mid-April peak.
While Coinbase and its zero-fee trading offer may appear enticing, it brings a wave of implications, reservations, and criticisms. The crypto community remains divided on the announcement and its future implications.
The post When Coinbase Launches Zero-fee Trading But There’s a Catch appeared first on CryptoMode.
