220 Interactions, 10 today
Jack Mallers criticises Coinbase’s “asinine” trading costs.
Strike, a payments platform, has announced that from today, US clients will be able to purchase and sell Bitcoin with practically no trading costs.
Strike founder and CEO Jack Mallers fired a salvo at top US cryptocurrency exchange Coinbase on July 1, claiming that his site will aim to be the “cheapest and easiest place on the planet to acquire BTC.”
Strike will now compete directly with Jack Dorsey’s Square and PayPal, which will begin selling crypto assets on its platform to U.S. consumers in November 2020.
According to the statement, the business has established the “Bitcoin Tab,” which allows users to buy Bitcoin on Strike for “no fee outside of the market spread.”
The Chicago-based payments company claimed that it will impose a maximum “execution cost” of about 0.3 percent for brokering BTC deals, with the goal of lowering that to less than 0.1 percent in the coming months as volume increases.
A well-known trading app In some states, Robinhood also provides commission-free cryptocurrency trading. During the first two months of 2021, more than 6 million new users purchased cryptocurrency on the site.
Mallers is taking direct aim at Coinbase with the move, calling its exorbitant trading fees “asinine.” He stated that Coinbase generated $1.8 billion in sales in the first quarter of 2021, with a profit of $771 million, 94 percent of which came from fees as high as 3%.
He was harshly critical of the exchange’s free freebies, which provide customers a couple of dollars’ worth of altcoins in return for watching movies.
“Make no mistake, when you buy Bitcoin on Coinbase, you are supporting shitcoins.”
There was also a dig at PayPal which he stated has also recently hiked fees across the board, and now charge sellers 3.49% + $0.49 to process crypto transactions.
Mallers added that the aim is to drive prices in the market as close to nothing as possible, which would be in keeping with Bitcoin’s ethos.
“Our mission is to secure financial freedom for all, and we won’t stop until we do so for all 8 billion people on the planet.”
Strike, as previously reported, has formed a relationship with the government of El Salvador to aid with its Bitcoin adoption push.