Startup calls Coinbase's Commission Structure "asinine"

Baron

Baron

ET Founder
Strike is letting its U.S. customers buy and sell bitcoin for almost zero in fees, sending shots across the bows of Coinbase, Square’s Cash App, PayPal and other incumbents.

The Chicago-based startup, best known for helping El Salvador adopt bitcoin, said Thursday it would charge only around 0.3% for brokering BTC trades in the 48 states and other U.S. jurisdictions where Strike operates. By comparison, Coinbase, which went public on the Nasdaq this year, collects as much as 3.99%, depending on the payment method and transaction size.

Jack Mallers, founder and CEO of Strike and its parent company Zap Technologies, likened the move to throwing “a grenade in Coinbase’s HQ.” In a blog post, he called Coinbase’s fees “asinine.”

If widely adopted, Strike’s new service stands to drive down the price of bitcoin trades for retail investors in the U.S. market, a development anticipated by many a Wall Street analyst in the lead-up to Coinbase’s stock listing in April. Traditional stock brokerage apps saw a race to zero on fees; wouldn’t crypto incumbents see the same?

https://www.coindesk.com/jack-mallers-strike-bitcoin-zap-prime-trust
 
MrMuppet said:
I agree. US clitizens get screwed even more since nobody wants them as customers. At least coinbase gets a little competition...
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moronic post. US is a wealthy nation, its population is very much welcomed as customers. Might not be by shady firms from Maldives who manipulate and potentially steal.
 
RedDuke said:
moronic post. US is a wealthy nation, its population is very much welcomed as customers. Might not be by shady firms from Maldives who manipulate and potentially steal.
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Its not the lack of wealth but the increase or well non regulation of crypto. It would be unfortunate if the Maldives was more business friendly then the greatest country on earth.
 
Derivatives exchange providers that aren't the cme like bitmex and have a lower margin requirement are banned in the US. Is it because the leverage is at 100? Oh but it's a derivative. But brokers can offer day trade margin at $500 a pop. Not saying you should be doing that but talk about double standards and favoritism for the CME man. Who might I add has the highest of all the exchange fees.
 
Baron said:
Strike is letting its U.S. customers buy and sell bitcoin for almost zero in fees, sending shots across the bows of Coinbase, Square’s Cash App, PayPal and other incumbents.

The Chicago-based startup, best known for helping El Salvador adopt bitcoin, said Thursday it would charge only around 0.3% for brokering BTC trades in the 48 states and other U.S. jurisdictions where Strike operates. By comparison, Coinbase, which went public on the Nasdaq this year, collects as much as 3.99%, depending on the payment method and transaction size.

Jack Mallers, founder and CEO of Strike and its parent company Zap Technologies, likened the move to throwing “a grenade in Coinbase’s HQ.” In a blog post, he called Coinbase’s fees “asinine.”

If widely adopted, Strike’s new service stands to drive down the price of bitcoin trades for retail investors in the U.S. market, a development anticipated by many a Wall Street analyst in the lead-up to Coinbase’s stock listing in April. Traditional stock brokerage apps saw a race to zero on fees; wouldn’t crypto incumbents see the same?

https://www.coindesk.com/jack-mallers-strike-bitcoin-zap-prime-trust
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I was never comfortable with this company. It was always setting off my "spider sense."

- Horrible customer service, worst I've ever seen for any kind of broker. Impossible to get help... even with password resets. Frustrating.
- One day I logged in, and my account was zeroed-out (!)
- I don't believe that they actually hold the crypto assets. It's just a number on the screen, backed by USD I imagine.
- Three "levels" of crypto ownership, and withdrawing crypto requires "level 3," and submission of two forms of ID... what happened to crypto anonymity?
- I just didn't trust them; felt like the gates would drop when they decided that it was time.

I got the feeling that behind this was a group of old-money bankers and government officials with a "war on crypto" agenda... building a database of crypto holders. I took my profits and ran.
 
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