Binance's zero fees promotion boosts trading volume beyond "312," SBF warns of potential wash trading.
Binance US and Binance International exchanges have successively waived some of the "Bitcoin spot trading pairs" transaction fees in June and July. The founder of FTX warned that this would inevitably lead to wash trading. Binance founder Zhao Changpeng quickly responded by stating that the trading volume of the relevant trading pairs will no longer be included in VIP level calculations.
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Binance.US
Binance.US announced the removal of trading fees for the following spot trading pairs on 6/22:
- BTC/USD
- BTC/USDT
- BTC/USDC
- BTC/BUSD
Surge in Bitcoin Trading Volume on Binance
Meanwhile, Binance also eliminated fees for 13 trading pairs on 7/8, including:
- BTC/AUD
- BTC/BIDR
- BTC/BRL
- BTC/BUSD
- BTC/EUR
- BTC/GBP
- BTC/RUB
- BTC/TRY
- BTC/TUSD
- BTC/UAH
- BTC/USDC
- BTC/USDP
- BTC/USDT
Recent tensions between Voyager's lending practices and Binance founder Changpeng Zhao (CZ) on Twitter prompted SBF to point out:
Zero fees = fake trading volume. This has always been an unchanging fact in the history of cryptocurrencies.
yup that was it https://t.co/aqqooWHpvO
โ SBF (@SBF_FTX) July 8, 2022
CZ Cancels VIP Level Calculation
In response, CZ responded swiftly to the issue. Binance issued an announcement stating the removal of the 13 BTC spot trading pairs from the VIP level trading volume calculation.
Following the removal of fees on Binance, the trading volume of BTC/USDT even surpassed the 312 mark set during the multiple stock market circuit breakers and crypto market crashes in 2020.
CZ also conducted a poll on Twitter to decide whether to continue with zero fees, stating:
Zero fees have led to some issues with volume manipulation. Providing zero-fee trading is a challenging task. Binance has an AI detection system to identify volume manipulation, but implementation is not easy. If users do not want zero fees, Binance can save on this additional work. Let's see the results of the survey; Binance listens to its users.
0 fee trading @binance creates a few problems, wash trading, VIP tiers, etc. A thread ๐
Do you still want it? ๐ 1/4.
โ CZ ๐ถ Binance (@cz_binance) July 8, 2022
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