Binance Users Vote in Favor of Keeping Free Transactions

Updated by Geraint Price
In Brief
  • Over 60% of Binance traders want the exchange to maintain its free transactions.
  • Zhao, however, says the policy could incentivize wash trading.
  • One users said the “pros” of maintaining the free transactions outweighs the “cons.”
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Binance users want the crypto exchange to maintain its transaction-free service for bitcoin, according to a recent poll by CEO Changpeng Zhao on Twitter.

Zhao asked if users wanted Binance to maintain zero-fee trading, while pointing out the associated risks.

As of press time, 66% of the 39,000 plus respondents want the firm to continue with the free transactions regardless of the inherent risks. 

This is unsurprising considering the fact that crypto traders would ordinarily want to do away with transaction fees.

While the free transactions could entice more traders to Binance, it could also affect its revenue. Binance is the largest crypto exchange in the world by trading volume.

Zero trading fees and associated risks 

Despite the numerous advantages surrounding zero-fee trading, CZ mentioned that its disadvantages include wash trading.

Zhao noted that customers can use wash trading to access the exchange’s VIP tier. And consequently, utilize the VIP tiers to gain lower trading fees.

Wash trading is an act where a trader transacts with another wallet controlled by them. This is usually an attempt to manipulate the market and give the impression of demand.

Zhao said the introduction of this service will require Binance to carry out several safety procedures. This procedure includes the use of artificial intelligence to detect illegal trades.

Mixed feelings among investors 

Oliver Bell, the founder of XCAD Network, a Watch2Earn platform, has welcomed the development.

He says that the request if accepted by Binance would attract and encourage new users into the industry. Adding that the “Pros outweigh the cons.”

However, another Twitter user with the moniker @VolatilityRob has asked what effect zero-fee trading would have on the market should a “significant market power” decide to dump their assets. 

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