Bitstamp introduces ‘inactivity fee’ to shore up revenue

Cryptographic exchange bit stamp publication From August 1st, you will be billed for an inactive fee of 10 per month.

This fee does not apply to US users or users with an account balance of more than 200. Bitstamp has revealed that most customers are unaffected by the new “inactive charges”.

The exchange said affected users can avoid billing by trading cryptocurrencies, making withdrawals and deposits, and betting Bitstamp revenue. If the user has not performed these activities in the last 12 months, inactive charges will apply.

Bitstamp said the move would help save money. addition:

Keeping inactive accounts on the books is a cost and we have made the difficult decision to implement inactive rates in order to continue to provide excellent service to all our customers.

Bitstamps, on the other hand, are not the only exchanges with inactive fees. There is also one on the cryptocurrency and stock trading platform eToro.

However, of eToro Inactive charges Applies only to users who have not logged in for 12 months. The website says that users can stop inactive charges once they log in.

The crypto community reacts

The crypto community has responded negatively to the new Bitstamp accusations.

@ Bitstamp Charge you for inactivity when they can’t charge you transaction fees … smart … very smart … a great way to get your customers to other exchanges. https://t.co/8AKdEinejY

DeFi Shark (@TheDeFiShark) July 6, 2022

According to DeFi Shark, Bitstamp’s new rates will push users to other exchanges.

#crypto An exchange that copies everything that criticized the banking industry

Freddy Turriaf (@fturriaf) July 5, 2022

Another user Said Cryptocurrency exchanges are copying everything that has been criticized in the banking industry.

Don’t say you’re bankrupt, say you’re bankrupt, @ Bitstamp pic.twitter.com/FHS2FqBPDD

Cryptoramus (@IgnoramussnTL) July 1, 2022

Some argue that the new fees suggest that exchanges may be struggling with solvency.

Cryptocurrency exchanges will be creative to diversify their earnings

Due to the slump in the crypto market, crypto trading activity, which is the main source of income for centralized exchanges, is declining.

Several exchanges, such as Crypto.com, Bullish, and Gemini, have adopted cost-cutting measures such as employee dismissals.

Others like FTX Venture Enter new areas such as equity trading and diversify your earnings. Kraken will expand its staking service and Coinbase will also launch a new subscription service called Coinbase One.