Coinbase Sparks Marketing War With VIP Trader’s Incentive

American cryptocurrency exchange Coinbase has introduced a fee upgrade program for its high-volume traders.

Coinbase Wooing High-Volume Traders

To start the new month, Coinbase announced it plans to establish a new fee tier upgrade program for Coinbase Advanced, the exchange’s VIP and high-volume traders. Consequently, top traders from other cryptocurrency exchanges will now be allowed to upgrade to lower fee tiers. All that is required of them is to provide proof of their trading volume to ascertain their capacity. 

According to Coinbase, this move was made to facilitate cheaper transactions for these VIP traders. To put it in perspective, these traders from other exchanges who have registered more than $500,000 in monthly trading volume will be allowed to fast transition to lower fee tiers. While in this position, the high-volume traders can begin to pay as low as 0.0% maker fees on spot trades on Coinbase Advanced. 

The program is effective immediately but traders would need to select their current crypto exchange after which they would be required to upload a screenshot of their recent trading volume. Once traders are verified, they would be upgraded to a fee tier with fees lower than what was obtainable at their crypto exchange. The upgrade process is likely to take around five working days. 

The lower fee will continue for 60 days after which the upgraded traders’ monthly trading volume will determine their subsequent fees on Coinbase. Other benefits would accompany the lower fee tier during the 60 days and thus includes complimentary premium customer support to ensure timely assistance for inquiries and trading needs. 

Coinbase and SEC Legal Brawl Drags On

With schemes such as this, Coinbase is gradually intensifying the ongoing cryptocurrency competition in the market at this time. 

This offering is a major deviation to bolster its offerings in the face of regulatory crackdowns. With the exchange still in court with the United States Securities and Exchange Commission (SEC), there is evidence to suggest that it will come out victorious.

Last month, Bloomberg’s Senior litigation analyst Elliott Stein highlighted that Coinbase has a 70% chance of winning the legal debacle. His stance stemmed from the position taken by Judge Katherine Polk Failla in the Coinbase versus SEC lawsuit. The presiding judge asked the SEC to provide its description and definition of some crypto terms that are not clear, a request that proved somewhat difficult for the SEC lawyers, reinforcing the argument that their prosecution is without deep convictions. 

Still in light of resolving its issues with the U.S. securities regulator, Coinbase recently appointed former UK Chancellor George Osborne to his board of advisors.