Binance users support no-fee trading despite CZ's wash trading concerns

Binance users support no-fee trading despite CZ's wash trading concerns | best app for trading cryptocurrency

When it comes to investing through exchanges, trading costs are one of the biggest liabilities for both traditional and cryptocurrency investors. Therefore, it should come as no surprise that, despite the dangers the founder and CEO of Binance, Changpeng "CZ" Zhao, pointed out, investors' interest in trading on the cryptocurrency exchange with no fees was overwhelmingly positive.

Binance is currently the largest cryptocurrency exchange with 10 times more trading volume than its closest rival, FTX. Zhao, who is known for adding innovations in response to community feedback, contacted investors through Twitter to get their opinions on the total elimination of trading costs.

Despite the fact that 0-fee trading may appear to be the best option for investors, CZ pointed out several potential issues, including wash trading. On Binance, wash trading—in which a user repeatedly buys and sells to influence market activity—can be utilized to advance up the VIP tiers.

Furthermore, CZ said that in order to make 0-fee trading widely available, Binance would need to put in place a variety of security measures, including technologies for detecting fraudulent trades. Lower trading costs are one of the perks associated with each VIP category. As a result, Brian Rast, a professional poker player, questioned, "If there are no costs, why do you need VIP tiers?"

Approximately 65.5 percent of the over 30,600 investors who participated in CZ's survey at the time of writing preferred trading without any fees. CZ is willing to make the adjustments despite the difficulties a new system would bring:

"See what the poll results are. We take user feedback seriously."

As it progressively obtains registrations and operating licenses from authorities, Binance is deepening its roots throughout the globe. The Spanish central bank on Thursday officially recognized Moon Tech Spain, a subsidiary of Binance that has been rapidly expanding, as a Virtual Asset Service Provider.