Leading self-custody crypto trading platform, ShapeShift announced Wednesday that it is bringing free trading between digital currencies into the crypto industry through its FOX Token.
In what the ShapeShift noted as a free “perpetual” trading, the exchange launched its highly anticipated FOX token today to slash out commission fees for trading on its platform; a move that further entices users away from custodial exchanges.
“We’d rather make a smaller amount of revenue from a larger pool of customers, and get those customers off centralized custodial exchanges, It’s a risk we’re taking, but we think it’s worth it,” Erik Voorhees, the Denver-based chief executive of ShapeShift comments.
As reported, traders will have to use the newly released FOX Tokens, to execute free transactions, and the more FOX tokens traders hold, the more free trades they can be able to accomplish.
The idea is that ShapeShift will reward its user with 100 free tokens, which will be deposited directly to their crypto wallet. Each unspent token will provide $10 of free trading volume on a rolling 30-day basis.
ShapeShift considers the development as a step to make a borderless, decentralized financial system a reality, with Voorhees adding that, “By offering high liquidity, zero trade fees, and a beautiful web-based UI, our goal is to help crypto users transition toward self-custody.”
Although the trading is commission-free, the firm also noted that network miner fees still apply to every trade on its platform.
In no doubts, zero to less trading fee is now becoming a feature for fintechs offering direct trading. It is also important to note that the crypto industry has been playing along, as some exchanges are already providing zero fees as part of short and long-term promotions.
One of the most significant spots trading exchanges, Binance allows users to lower their trading fees by choosing to pay via its cryptocurrency, Binance Coin (BNB), with plans to further lower the discount by 2020.