The Exchange War Continues as itBit Announces Maker Rebates for ETH and BCH Trading
The growing competition among crypto exchanges has opened the gates for various compensation and reward programmes to gain as much customer base as possible. itBit a NewYork based exchange has become first of its kind to announce make rebates on all its Bitcoin trades with immediate effect.
The chairman of the exchange while interacting with media has said that the compensation programmes has been a hit across the retail and institutional which has also resulted in boosting their trade volumes. He hopes the trend continues even with the Bitcoin trades.
Rebates Are not completely “Legal” in Crypto Space
The Rebate form of compensation is quite popular in traditional stock markets where the exchange provides a certain amount of rebate to the traders who provide liquidity to the firm, while the traders who take the liquidity away are fined for the same.
The rebate system is quite controversial and its a subject up for review by the SEC, however despite that itBit has become the only exchange to offer rebates on its crypto to fiat trades. The bitcoin maker rebate would be paid in fiat, confirmed the firm.
The crypto exchanges around the world are subjected to a lot of scrutinies and rightly so, mainly because of the various trade tactics they indulge in to inflate their trading volume. Trading volume plays a very dominant role in the crypto exchange community, as it is seen as a parameter to decide which exchange is doing better than others. However, in order to attract more user base, often these exchanges indulge in data fudging and wash trading activities to show an inflated number.
itBit's decision to offer maker rebate on both BTC and ETH for sure lure more customers to the platform, especially the new ones. However, these kinds of activities by the exchanges can put them under the eyes of regulators.
Crypto exchanges already have been facing a lot of flak for their irresponsible security measures and lately for their inflated numbers. A recent study has suggested that the majority of the trading volume produced by these exchanges are fake. If they don't learn from their mistakes, the increasing vulnerability might even lead to their banning.