Bitcoin Exchange Backed by Pomp, Song and Woo Removes Trading Fees to Contend With Coinbase, Gemini – CoinDesk

CoinDesk

Upstart crypto exchange LVL wants to take on U.S. giants Coinbase and Gemini by removing trading fees.

Announced today, LVL (pronounced “level,” as in playing field) is making its entire service free to use. LVL, which is backed by Morgan Creek Digital’s Anthony Pompliano and Bitcoin advocates Jimmy Song and Willy Woo, previously had no trading fees but only for subscription users.

LVL is also partnering with Mastercard to release two debit cards in early 2021. A standard plastic debit card will be available to free-tier users for a $10 issuing fee, while a metal Mastercard is included with three months of LVL’s Premium service.

How To Get Free Crypto  

The new features come as bitcoin is hitting all-time highs.

“We’ve always been behind a subscription paywall but now we’re just making our entire service free to use,” said LVL CEO Chris Slaughter. “You can buy and sell bitcoin, you can use the plastic debit card. So now in North America, there’s a regulated exchange that’s 100% free to use.”

Read more: Bitcoin Trading Fees on PayPal, Robinhood, Cash App and Coinbase: What to Know

LVL’s point is that large U.S. exchanges like Coinbase and Gemini with remarkably similar pricing schemes create a lack of competition. If it takes a scrappy minnow with just $2.5 million raised to date to disrupt the monopoly effects of these crypto exchanges, Slaughter said, then bring it on.

“We are a super scrappy business contender by nature,” he said. “Like, we only have seven people but we have the first Mastercard approval in North America. We’re registered with FinCEN. And not only do we have bank accounts, they are full checking accounts.” (LVL also provides FDIC insurance on those accounts through banking platform Evolve, Slaughter said.)

Revenue model

The exchange makes its money, Slaughter explained, by charging $3 for withdrawals, which primarily covers network fees. (Coinbase charges a $1–$5 network fee.) The trading platform also charges $5 for same-day bank transfers and wires, which covers the exchange’s risk provisioning credit to users and generates some income for LVL, Slaughter said.  

Coinbase Banner  

The premium service at $9 per month, which also includes live-chat facility with a banker, is the means by which LVL Autopilot brings liquidity to the platform. The system runs industry-standard market-making algorithms, providing liquidity to traders and generating passive income for the Autopilot user, says Slaughter.

“Based on our current number of pro users, and the way we expect liquidity to grow following this announcement, we expect to pass Coinbase’s liquidity within the 2% band in January,” said Slaughter. 

Read more: 5 Reasons Why Bitcoin Just Hit an All-Time High Price

For now, LVL is available in 28 states and territories representing 60% of the U.S population, and is expected to service 94% of Americans by the end of 2021, Slaughter said.

“William [Woo] and Jimmy [Song] were involved so freakishly early that they actually have founder shares,” said Slaughter. “Pomp got involved in the second half of last year and we have regular weekly meetings with him to talk about marketing.”

FreeBitcoin Banner  

Song said the aim is to even the playing field for users who are currently being scalped for fees.

“Level is a revolutionary exchange that will change the game,” Song said via email. “Unlimited trading allows for really interesting innovations like an autopilot market-making which will give users a return on their Bitcoin.”

Disclosure

Go to Source
Author: Ian Allison


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.