Coinbase, a cryptocurrency exchange platform, has announced upgrades to its membership account, Coinbase One. The new membership offers zero trading fees, increased staking rewards, and priority support. However, users will have to pay $30 a month for the new service, which has raised concerns. Coinbase has been criticized for having some of the highest trading fees in the industry, and it makes the majority of its profits from these fees. The subscription model is more likely to benefit heavy traders who make frequent trades, as they would be paying more in trading fees than the subscription fee. Additionally, heavy traders are more likely to use decentralized exchanges, where the fees are lower. Coinbase is offering a 30-day free trial for the new service, which includes priority support.
Expansion and Partnerships
Coinbase stated that it would expand access to Coinbase One in the United Kingdom, Germany, and Ireland, in addition to the United States. The firm is also offering perks with partners, including Messari, CoinTracker, and Lemonade. Coinbase already offers premium accounts, and the zero trading fee offer does not apply to Advanced Trade, Coinbase Pro, or Coinbase Prime.
Crypto Community’s Reaction
The crypto community’s response to Coinbase’s new service has been mixed, with some expressing skepticism. One Twitter user, with 300,000 followers, tweeted that Coinbase’s support team had informed them that the zero trading fees were only for up to $10,000 worth of trading a month and that Coinbase still takes advantage of people with slippage on basic trading. In response to the launch, COIN shares slipped 1.28% on the day, falling to $60.35 in after-hours trading. The crypto markets also dropped 1.5% on the day, with total capitalization falling to $1.16 trillion. Bitcoin lost 2% in a fall to $26,782, while Ethereum dipped 1.3% to just below $1,800 at the time of writing.
Despite the mixed reactions, Coinbase has stated that it is expanding its membership account and offering new perks to its partners. The firm’s new subscription model may appeal to heavy traders who make frequent trades and want to avoid high trading fees. However, the subscription fee may be too high for casual traders who do not make enough trades to justify the cost. Overall, Coinbase’s new service is an attempt to attract more users and retain existing ones by offering more benefits and improved support.