Binance’s trading volume has skyrocketed after the exchange, the world’s largest by trading volume, launched its global zero trading fee policy for 13 cryptocurrency pairs Friday morning.
The move caused an explosion in the exchange’s trading, with spot Bitcoin/Tether (USDT) volume rising to 320,000 coins within hours. Binance has not seen such high daily volume since March 2020.
Binance CEO Changpeng Zhao attributed the increase to people trying to earn VIP levels (with more benefits) through high trading volumes.
“We will exclude BTC trading from VIP calculations,” he tweeted. “We will remove all incentives for the ‘wash trade’. We will post an announcement with details shortly.” A wash trade occurs when an investor buys and sells an asset with the aim of artificially inflating the price.
The exchange made the zero-fee announcement Wednesday, with the plan taking effect on Friday on Binance’s fifth anniversary.
“With the onset of the cryptocurrency bear market, exchanges like Binance have been looking for ways to attract and retain users on their platforms to ensure their market share remains healthy,” CoinDesk reported last week.
How far will cryptocurrencies go? What’s the best way to buy them? We have prepared a free class with step by step. Click here to watch and receive InfoMoney’s cryptocurrency newsletter