Coinbase Shares Fall After Rival Binance.US Drops Spot Bitcoin Trading Fees

Coinbase shares fell almost 10% on Wednesday after rival crypto exchange Binance.US said it's dropping certain trading fees for customers. CNBC reports: Binance.US, the U.S. affiliate of the largest crypto exchange in the world by trading volume, said it will allow users to make spot bitcoin trades for the U.S. dollar and stablecoins tether, USD Coin and Binance USD without paying spot trading fees. Shares of Coinbase were down 9.7%. Robinhood slipped by less than 1%. In a separate report, Barron's Daren Fonda speculates that a price war could be next.

"It's the beginning of the end of Coinbase's high-fee business model," says Mizuho Securities analyst Dan Dolev. "We've said that the fees will eventually go close to zero. And it could be pretty rapid -- it may be months. The market is very competitive and getting tighter."

To the anti-moon

[Anonymous Coward]

We've said that the fees will eventually go close to zero.

Which by a staggering coincidence is also where cryptocurrency prices are headed.

Re:

[iggymanz]

nah, this is all disgusting stuff. Natalie Portman pouring hot grits down our pants or covered with them, or robotic overlords or how it was different in Soviet Russia, that was peak Slashdot meming.

Re:

[DrMrLordX]

TBH I'd rather have the "you are all cows!" guy.

Re:

[iggymanz]

Moooo! Moooo! You are all cows, licking hot grits off Natalie Portman! Moooo! Moooo! Lick! Lick!

Re:

[awwshit]

To the Toilet!

Re:

[Lisandro]

What are you talking about? The community is thriving!

https://twitter.com/mdudas/sta... [twitter.com]

Oh boy

[istartedi]

One of the reasons I gave to avoid that stock was, "let's see how it does in a crypto bear market. If it survives then it might be a good buy some day". I never thought about price wars with other exchanges in the middle of a bear market. That's double-plus un-good.

Re:

[h33t l4x0r]

There's something weird about trading shares of a crypto exchange on a stock exchange. It feels like we're being inceptioned.

Re:

[gosso920]

Or watching a turd circling the drain.

Re:

[ceoyoyo]

May of the big stock exchanges are owned by publicly traded companies. You can buy shares of the NYSE, NASDAQ, Tokyo or London.

NASDAQ Inc. is listed on the NASDAQ:
https://www.google.com/finance... [google.com]

Re:

[h33t l4x0r]

--- And then issue a coin that's backed by those shares on the Binance blockchain.

Fighting for rubes

[DrXym]

Idiots with disposable income are starting to dry up. Maybe they should compete by giving a free NFT with every trade. Something representative of what these investments are worth - a picture of someone's face smeared with dog shit for example.

Re: Fighting for rubes

[mugnyte]

When millions of click/view/approvals on social media creates a generation of young wealthy people, they will speculate everywhere, especially in newer, internet-focused platforms that have a whiff of counter-culture in them. Meh, they will lose some money, make it back, and new folks will follow. Rubes are an endless resource

Crypto exchanges charge WAY too much

[Anonymous Coward]

Cryptocurrency exchanges have almost exclusively operated on taking a percentage of every trade. This is flat out ridiculous and nothing else works like that. They're just sucking money out of the system.

I can trade $100MM worth of property on the real CME futures exchange for $2 or less per trade. If that was crypto they would be slicing off a huge percentage which makes trading crypto really stupid.

Get your act together, exchange-hogs.

Re:

[jeremyp]

nothing else works like that

Actually, quite a lot of things do. If I go on holiday to a foreign country, and I want some currency, there are fees to be paid. There are fees to be paid for putting a transaction on the blockchain. You could argue that, when I buy something retail, the retailer takes a fee.

Re:

[Lisandro]

Actually, quite a lot of things do. If I go on holiday to a foreign country, and I want some currency, there are fees to be paid.

Yeah, but scales matter. Crypto fees, across the board, are stupidly high. Forget about exchanges; gas fees alone are still prohibitively high for most popular coins.

The OPs point is that regular, boring old finance is way cheaper, any way you slice it. Even for the foreign currency usecase you can find services such as Wise which are super affordable.

currency in exchange

[freemiumtemplates]

Hello, A cryptocurrency payment gateway is a payment processor for digital currencies, similar to payment processors, gateways, and bank credit card acquiring. Cryptocurrency gateways https://cryptoprocessing.com/o... [cryptoprocessing.com] allow you to accept digital payments and immediately receive a fiat currency in exchange.