Bloomberg News reports that Bitstamp, the crypto exchange, is planning a monthly inactivity fee for a few users. This comes as a downturn in the trading volume, which is weighing heavy on the market.
The New Strategy for Revenue
It has been decided that the charges will be 10 Euros, equivalent to $10.27 monthly. Those accounts will attract the charge that has not been active for over a year. The norm will be effective on August 1st, as stated by Bitstamp in its company blog.
In the company blog, Bitstamp said that if there are inactive accounts, the cost must be borne. It also said that to extend excellent services to the customers, although it was a hard decision, it will be introduced, and the inactivity fee will come into force. If a user wants to avert the charges, he can withdraw, deposit, or enroll for any staking service, which is, in one way, a means to earn rewards for certain types of cryptocurrencies they hold.
Bloomberg News also reports that there are various ways the cryptocurrency exchanges have been exploring ways to decrease their dependence on trading revenues. Trading revenues tend to drop when there is a downturn in the market.
Coinbase Global Inc, the largest crypto exchange in the United States, has warned that the trading volume will be lower in the second quarter compared to the first quarter. FTX US, another crypto exchange set up by Sam Bankman-Fried, expanded into equity trading, diversifying revenue sources while simultaneously capturing a broader group comprising retail investors.
Etoro, a crypto platform that offers crypto trading and stocks, also charges an inactivity fee. It applies to users who have not been active for a year, as revealed on the company website. The charges will no longer be effective when users log in again.
Set up in 2011, Bitstamp is a Luxembourg-based crypto exchange that is the oldest and the most active. As of July 6th, 2022, the company’s trading volume in the last 24 hours was found to surpass $173 million, as per data revealed by Coingecko.
