On May 18, the company announced upgrades to Coinbase One, a membership account that offers no trading fees, enhanced staking rewards, and priority support.
However, the catch is that users will have to pay $30 per month to get the privilege.
Coinbase has often been criticized for having some of the highest trading fees in the industry. She makes the lion’s share of her earnings from these often exorbitant fees, so the model is clearly working.
Paying a monthly fee to eliminate these fees will only be beneficial to whales and heavy traders. Moreover, those who trade a lot are less likely to trade on Coinbase and prefer a decentralized exchange (DEX) where fees are a fraction.
2/ The Best of Coinbase Just got the “best” of unlocking no-fee trading fees, a dedicated support team, enhanced staking rewards, and exclusive benefits from Coinbase One partners – all for $29.99 per month.
Request a 30-day free trial → https://t.co/agCecP7lsp
– Coinbase 🛡️ (coinbase) May 18, 2023
Coinbase One catch
Coinbase is offering a 30-day free trial of the new service, which includes priority support. Aside from its exorbitant fees, the company has also come under fire for its lack of customer support.
It appears that Coinbase customers now have to pay to get a timely response through the support channels. Members will also be able to receive support through a cryptocurrency tax filing added.
The company stated that it is working on expanding access to Coinbase One in the United Kingdom, Germany, and Ireland in addition to the United States.
Moreover, the company offers franchises with partners, including Messari, CoinTracker, and Lemonade.
Coinbase already offers premium accounts and has stated that the Zero Trade offer does not apply to Advanced Trade, Coinbase Pro, or Coinbase Prime.
The reaction from the cryptocurrency community has been mixed with a fair amount of skepticism about the service. A Nebraska Gunner told his 300,000 followers:
“Your support team told me to cancel my membership because the zero trading fee is misleading and only for up to $10,000 worth of trading per month and still cashing in on people with slippage in underlying trading anyway.”
COIN shares were down 1.28% on the day in a drop to $60.35 in after-hours trading.
Crypto Market Outlook
Cryptocurrency markets are down 1.5% on the day, with total capitalization down to $1.16 trillion.
Bitcoin lost 2% on a decline to $26,782, while Ethereum fell 1.3% to just under $1,800 at the time of writing.
The markets have been skewed for the past two months and are still falling from their highs in mid-April of this year.
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