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Liquid to Introduce Fees on Cryptocurrency Withdrawals
Will Traders Switch to Other Exchanges?
Exchanges are a key component of the cryptocurrency ecosystem. They allow the easy exchange between fiat currencies to cryptocurrencies such as Bitcoin. In addition to that many, if not most offer a variety of trading pairs of cryptocurrencies on their platform.
While many of the more popular exchanges today, such as Binance and Gemini are relatively new, many older exchanges are still operational. One of the more established exchanges, Liquid has announced a change to their business model.
Liquid Announces Changes
Established in 2014, Liquid is one of the older exchanges online. It was the first exchange to be officially licensed by the Japanese Financial Services Agency in 2017. Liquid has also notably merged with Quoinex and Qryptos (historical trading platforms) in 2018.
Like many exchanges, Liquid has a native exchange token called QASH. It is currently #145 on Coinmarketcap and trading at $0.06.
In a surprise to many, Liquid have announced changes to their withdrawal service in a blog post. The primary change is a new fee on cryptocurrency withdrawals.
The fees will be instated starting October 30th
and the exact fee or percentage on withdrawals varies on the cryptocurrency
asset. The full list can be viewed here.
The reason for the fees is to allegedly speed up withdrawal times. Liquid have claimed that Bitcoin & Ethereum withdrawals will be processed within 5 minutes following the changes.
Will Liquid Changes Affect QASH?
One of the larger perks of trading on Liquid was the fact that there were no commissions on cryptocurrency withdrawals. By adding this additional fee, Liquid wouldn't have much of a competitive advantage over some of the newer exchanges.
While Liquid has delivered some positive changes such as zero-block-confirmation bitcoin deposits and a new dashboard recently, it might not be enough to lure traders.
Seeing these changes, one can guess that Liquid will lose more popularity amongst traders, which in turn will devaluate QASH.