Cryptocurrency exchange Binance recently announced its plans to modify its zero-fee Bitcoin (BTC) trading program starting on September 7th. This decision has the potential to cause a significant market downturn, similar to what was observed earlier this year when Binance discontinued zero-fee trading in March.
In an official statement, Binance stated that it intends to modify zero-fee Bitcoin trading for the BTC/TUSD spot and margin trading pair. Previously, traders enjoyed zero maker and taker fees when trading BTC with TUSD pairs. However, a regular taker fee will now be implemented based on the user’s VIP level. Despite this change, users will still not incur any maker fees when conducting Bitcoin trades on the BTC/TUSD spot and margin trading pair.
The discontinuation of this program could indicate a reduced backing for the TrueUSD (TUSD) stablecoin due to various concerns. However, users will still be able to trade Bitcoin with zero maker and taker fees using the First Digital USD (FDUSD) spot and margin trading pair.
This adjustment by Binance could inadvertently lead to another round of selloffs in the market. The BTC/TUSD and BTC/USDT pairs are the most frequently traded for Bitcoin, accounting for 11% and 7% of trading volume, respectively. The trading volume in Tether (USDT) pairs experienced a significant drop after Binance stopped supporting Binance USD (BUSD) and made TUSD the only trading pair for zero-fee Bitcoin trading.
Once again, Binance is shifting attention away from the widely traded TUSD to the lesser-known FDUSD stablecoin. However, it is worth noting that FDUSD does not rank within the top 10 Bitcoin pairs by trading volume, and its market capitalization is only $324 million.
This move by Binance has the potential to echo the market downturn observed in March when zero-fee trading was discontinued. It remains to be seen how traders and the market will react to this change.
In the ever-evolving cryptocurrency landscape, it is important to stay updated and informed about the latest developments. By following the actions of major exchanges like Binance, investors and traders can make more informed decisions and navigate the market effectively.
As the crypto industry continues to grow and mature, fluctuations and adjustments in trading programs and fees are to be expected. It is crucial for traders and investors to adapt to these changes and stay informed to mitigate any potential risks.
As Binance modifies its zero-fee Bitcoin trading program, it is worth keeping an eye on the market to see if any significant shifts occur. The impact of this change may not be fully realized until it is implemented, but traders and investors should be prepared for potential market fluctuations.