Binance Triggers Another Crypto Market Selloff In September

The world’s largest crypto exchange Binance on Thursday said it plans to make changes to its zero-fee Bitcoin trading program. The move will likely trigger another major selloff across the crypto market as trading volumes will take a hit similar to a 90% trading volume fall after the termination of zero-fee trading by Binance in March.

Binance Announces Changes to Zero-Fee Bitcoin Trading

Crypto exchange Binance in an official announcement on August 24 revealed updating the zero-fee Bitcoin trading from September 7. Binance plans to make changes to its zero-fee Bitcoin trading for BTC/TUSD spot and margin trading pair.

Users were enjoying zero maker and taker fees when trading BTC with TUSD pairs. Now, a standard taker fee will apply as per the user’s VIP level. However, users will continue to enjoy zero maker fees when trading Bitcoin on the BTC/TUSD spot and margin trading pair.

“The corresponding trading volume on the BTC/TUSD spot and margin trading pair will count toward VIP tier calculation and all Liquidity Provider programs. In addition, BNB discounts, referral rebates, and any other fee adjustments will resume for BTC/TUSD spot and margin trading volumes.”

Binance apparently ending its zero-fee Bitcoin trading program for TUSD, reducing its support for True USD (TUSD) stablecoin amid several issues. Notably, users will continue to enjoy zero maker and taker fees when trading Bitcoin in the FDUSD spot and margin trading pair.

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Crypto Market Selloff Again

Binance is mistakenly triggering another selloff event by changing its zero-fee Bitcoin trading program for BTC/TUSD spot and margin trading pair.

As per CoinMarketCap, BTC/TUSD and BTC/USDT are the most traded pairs for Bitcoin, accounting for 11% and 7% respectively. Trading volume in Tether (USDT) pairs plummeted immensely after Binance ended BUSD support and announced TUSD as the only trading pair for zero-free Bitcoin trading.

However, the exchange is again shifting its focus from majority traded TUSD to less known FDUSD stablecoin. It doesn’t even come under the top 10 Bitcoin pairs in terms of trading volume. This will likely trigger another decline in trading volumes, causing more pressure on the market. FDUSD’s market cap is just $324 million.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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