Binance Announces Its Bitcoin Decision: Wash Trading Explodes!

Binance had reset the transaction fee on some Bitcoin trading pairs. However, the explosion of wash trading caused the crypto exchange to change its decision. Here are the details…

Binance will exclude 13 spot BTC pairs

In a blog post published late Friday, Binance announced that it will exclude 13 spot BTC pairs from trading volume calculations as an increase in wash trading was observed following the announcement of zero trading fees for BTC pairs. Changpeng Zhao, CEO of Binance, tweeted an hour before the final announcement. He responded to the observation that $3 billion worth of BTC was bought in just 2 hours, although it had no effect on the BTC price. Zhao used the following statements:

We think this is due to people trying to earn zero fees and VIP tiers. We will exclude BTC trading from VIP calculations. We remove all possible incentives for wash trading. Details will come in an announcement soon.

Rockefeller Official Also Made History: Here's the Bitcoin Forecast!

Don’t users want zero transaction fees?

Wash trading is a practice where traders buy and sell the same financial instrument at the same time. The practice is illegal as it can allow investors to misrepresent demand for a particular asset. Following the decision, Binance’s CEO created a survey to see if users still want zero fees on Bitcoin pairs. However, he added that the exchange is willing to push it if the community decides to do so. Zhao used the following statements:

Binance seeks to expand

At the time of writing, most users have voted to remain free trading on BTC pairs. The poll received 66 percent of the yes votes. AmkNews.com As we reported, Binance launched free trading in Bitcoin pairs as it celebrated its 5th anniversary on Friday. In particular, this move is set to inflame competition among crypto exchanges. It is worth noting that Binance is one of the few exchanges with expansion plans despite the downturn in the crypto market. Rivals like Coinbase and Gemini have had to downsize to keep costs down even as trading activity has plummeted. This put an extra burden on stock market revenues.

Cryptocurrency Decision from Binance

As it is known, Bitcoin has experienced a serious loss of value, especially in the last 2 months. The value of the largest cryptocurrency is currently around $21,627, up 0.3 percent. However, it has dropped as low as $18,000 in recent weeks. There are many who think that this level is a “bottom level”. However, there are also those who predict greater rises in BTC.

Disclaimer: The articles and articles on AmkNews do not constitute investment advice. AmkNews.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is AmkNews an investment advisor. For this reason, AmkNews and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.

Warning: Citing the news content of AmkNews and quoting by giving a link is subject to the permission of AmkNews. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of AmkNews in violation of intellectual property law and relevant legislation.

Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing amknews.com site 3 months ago.