Strike: Bitcoin & Lightning payments platform announced that they will provide U.S. customers to buy and sell Bitcoin with nearly no trading fees from July 1.
Jack Mallers’ Announcement
In that announcement, Strike founder and CEO Jack Mallers launched a salvo at the U.S. leading cryptocurrency exchange Coinbase, stating that Strike will set out to be the ‘cheapest and easiest place in the world to acquire BTC.’
Moreover, this step puts Strike in competition with Jack Dorsey’s Square and with Paypal, which offers crypto assets within the platform to U.S customers in November 2020. In addition, this announcement stated that the firm launched the ‘Bitcoin Tab’ enabling the way to buy Bitcoin on Strike with ‘no fee.’
The Chicago-based payments firm announced that it would charge a maximum ‘execution cost’ of around 0.3% for brokering BTC trades, aiming to reduce that to below 0.1% over the upcoming months as volume grows.
Also, Robinhood, a popular trading platform, offers commission-free crypto trading in applicable states. Moreover, above 6 million new customers bought crypto on the platform within the first two months of 2021.
Jack Mallers aimed directly at Coinbase with the move, indicating trading fees as ‘asinine.’ Mallers pointed out that Coinbase made $1.8 billion in revenue at the beginning of 2021, with $771 million in profit, 94% of which coming from fees like 3%.
Moreover, he was highly interested in the exchange’s free giveaways, which award users $2 worth of altcoins for watching videos. Finally, mailers stated that don’t make mistakes when you buy Bitcoin on Coinbase, and you are supporting shitcoins.
Also, there was a dig at Paypal, which he said has also recently hiked fees across the board and now charges sellers 3.49% + 0.49 to process crypto transactions.
Mallers also added that the plan to operate prices in the market as close to nothing as possible will keep Bitcoin’s ethos.
According to the source by Cointelegraph, Strike entered into a partnership with the El Salvador government to help with its Bitcoin adoption.