Zhao Changpeng, the CEO of China-based cryptocurrency exchange Binance, has announced that the exchange has cut withdrawal fees for all its erc20 tokens by 25%.
The founder tweeted in a post at 01:50 GMT on Monday morning the following:
“erc20 token withdrawal fees have been reduced by 25% on #binance. This fee will be dynamically adjusted overtime.”
Binance already charges one of the lowest fees found in cryptocurrency exchanges. Up until now, the exchange charged a 0.1% trading fee on buy and sells orders, no deposit fees, and withdrawal fees that vary on from coin to coin.
ERC stands for ‘Ethereum Request for Comments’, being an official protocol that proposes improvements to the Ethereum network, with the ’20’ coming from the unique proposal ID number. Being an ERC20 token means that the coin has fulfilled certain criteria necessary for it to interact with other ERC20 tokens. By meeting this set of rules, the coins are enabled to effectively piggyback off Ethereum’s network; at the time of writing there were over 450 ERC20 tokens.
ERC20 coins that can be traded on the Binance platform include Vechain (VEN), Salt (SALT), Dent (DENT), Digix Dao (DGD), U.Cash (UCASH), Wax (WAX), Po.et (POE), and the exchange’s own digital coin (BNB).
The changes will be taken on a rolling basis. The withdrawal charged levied on Binance Coin has currently experienced a drop in price from 0.86 BNB to 0.54 BNB, a $3 reduction in current prices. The platform has also seen a 36% fall in charges for Salt withdrawals, down from 1.9 SALT to 1.2 SALT. The withdrawal fee for Digix DAO has not seen any changes so far.
The announcement comes after its customers have pressured Binance to reduce its withdrawal fees, claiming that it has prevented more cryptocurrency transactions from taking place. Today’s news means that sending coins through the Binance platform can be done cheaper.
As a result, withdrawal fees on EOS (EOS) should now be charged at 0.525 EOS as opposed to 0.7 EOS earlier on a minimum withdrawal of 1.4 EOS. In a similar manner, Tron (TRX) and Qtum (QTM) withdrawals should now be charged at 96 TRX and 0.0075 QTM, respectively.
A Hong-Kong based company, Binance is one of the biggest cryptocurrency exchanges on the market. During the investment rush throughout December and early January, Binance stated that thousands of new users were singing up every day. In a Bloomberg news interview, Zhao claimed that 250,000 new customers have signed up in a single day.
The announcement of the reduction in withdrawal fees should be considered good news to all Binance users.