Paxo’s itBit Exchange is Attracting New Crypto Traders by Adding Liquidity Rebates to its Platform

The cryptocurrency exchange itBit is trying to incentivize traders with increased liquidity. During an interview with TheBlock, the firm started to support trading for Ethereum (ETH), the second largest digital asset in the market. They have also added support to Bitcoin Cash (BCH).

So as to attract businesses, the firm has also started to offer rebates to individuals by adding liquidity to their platform. These rebates play an important role in the trading model. Maker-taker exchanges offer rebates to users that add liquidity to their venues. Additionally, these exchanges tend to charge users for taking liquidity.

According to the company, the rebates allowed the firm to grow its market share in terms of Ethereum trading.

David Mercer, the CEO of LMAX Digital, mentioned:

“Compression will come from supply and demand. I fully expect crypto to trend toward Equity and FX commission models in the next decade.”

The company is trying to help clients reduce their costs and have reliable trading services as well. According to Paxos, retail and institutional traders are very excited about having post-only mode and rebates. Post-only orders provide a guarantee that a specific trade is going to be executed only if it adds liquidity to the market.

In the future, the company wants to add rebates to other markets as well. David Wells, the general manager of the exchange, said that they are definitely analyzing the possibility to add rebates to other assets.

There are other exchanges in the market that are already offering this feature. For example, Bitfinex is one of them. As Wells explains, the concept of the maker rebate seems to be popular across retail and institutional investors.

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