It appears more controversy is on the horizon in the cryptocurrency sphere. Gemini, a popular institutional exchange, has decided to raise its trading fees. That is not to the liking of most users, for rather obvious reasons. The reasoning behind this decision is rather unclear, but it creates some bad blood.
Gemini is a prominent cryptocurrency trading platform. Albeit not designed to appease regular consumers, the company is still pretty appealing to bigger investors. Even so, this trading platform has to revise its strategy sooner or later. As such, the platform now uses 1% trading fees for specific users. Anyone who trades a volume of less than 50 ETH per month will face this new structure.
A Strange Decision by Gemini
A lot of people are not happy with this decision. Higher trading fees are never a good way to attract more users. There is a fair amount of outrage across social media platforms regarding this change. Especially because there was no previous announcement of such an impending change.
Speculation runs wild in this regard. Some bad actors claim this is compensation for the falling Bitcoin price. Others think it is a sign of how Gemini isn’t generating enough revenue from trading fees to keep the ball rolling. Which story is true in the end, will always remain a mystery. These high fees offset the lower transaction fees Ethereum users are benefiting from at this time.
There is a positive side to this development as well. An increase in fees forces users to look for alternative solutions. As such, other companies may lower their costs accordingly, which is great news for all users. A very peculiar decision, but one that can strengthen the ecosystem as a whole. At least until decentralized exchanges take center stage.
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Author: JP Buntinx”