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Usha Yadav
Jul 9, 2022
by Usha Yadav

Binance CEO Nixes Incentives After Bitcoin Wash Trading Surges

Binance

Table of contents

  1. Binance Avails Nine Different VIP Tiers
  2. Binance Fifth Anniversary
Binance CEO Changpeng Zhao is taking stricter measures against wash trading on its cryptocurrency exchange, following the company's decision to eliminate fees for Bitcoin spot trades. On Friday, a community manager at Mandala Exchange discovered that although a significant amount of Bitcoin had been traded quickly and unexpectedly, its price had hardly altered. It implied that many dealers were buying and selling, maintaining a constant price. Zhao stated that Binance would "exclude BTC trading from VIP calculations" and "eliminate any incentives to wash trade" on the exchange. He believed this was because of $0 fees and users wanting to advance in the VIP tiers.

Binance Avails Nine Different VIP Tiers

There are presently nine different VIP tiers available on Binance, and each one lowers user fees for all currencies available on the exchange. The higher a user's VIP tier, the more money they have spot traded within 30 days. Hours later, Binance announced that its 13 distinct Bitcoin spot pairs (such as BTC/BUSD) would no longer be eligible for VIP tier perks and its spot liquidity provider programme. According to the firm, the modifications were made to "maintain a fair trading environment for all users."

Binance Fifth Anniversary

On its fifth anniversary, the exchange eliminated Bitcoin spot trading commissions. Binance seems to be holding up well throughout the bear market compared to other faltering cryptocurrency businesses like BlockFi and Celsius or exchanges like Coinbase and Gemini, who are laying off staff.

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Binance Changpeng Zhao Bitcoin Wash Trading
Binance CEO Nixes Incentives After Bitcoin Wash Trading Surges
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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