Bitstamp exchange is canceling plans to introduce an inactivity fee just five days after announcing the charge.
The firm had planned to charge non-U.S. users $10.18 a month for accounts with less than $200 worth of assets that have been inactive for a year.
The planned move quickly drew widespread criticism from the industry with some noting the move reeked of desperation to stay afloat amid the market carnage.
Bitstamp’s trading volumes took a major hit, falling below $60 million but in a U-turn, the exchange has now ditched the controversial plan.
“After listening to our community’s response, we’ve changed course,” said the firm in a blog post. CEO JB Graftieauz said in a separate statement that the exchange took everyone’s concerns on board before arriving at the decision and that the company has not deviated from the goal of being “a secure and reliable trading platform.”
Bitstamp has no exposure to failing crypto companies
After the news of the planned inactivity fee was made public, there was speculation that Bitstamp was experiencing financial problems. Analysts hypothesized that the exchange might have had significant exposure to troubled crypto firms.
However, Bitstamp debunked claims that it had exposure to companies “under stress”. It stated that the fiat and crypto holdings of clients are held separately from corporate assets and noted that all customers can continue to “enjoy all our services regardless of the balance” on their accounts.
Some exchanges are grappling with grim market conditions by introducing sweeping policies. Smaller exchanges like Coinflex and Vauld have suspended withdrawal, while large exchanges like Coinbase have laid off up to 20% of their staff.
Some exchanges better insulated than others
It appears that not all crypto firms are going through the throes of the crypto winter. Binance and FTX are bucking the trend to announce plans to aggressively expand their staff strength and introduce new products to customers.
Both firms have been on a spending spree to prevent the contagion of failing firms from spreading across the ecosystem. And Binance has taken things up a notch by eliminating fees for Bitcoin trades on its platform.
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