Victor Ugochukwu · Dec 14, 2020 . 5min read
Binance extends its VIP Program into January 2021
Binance, the largest crypto exchange by daily trade volume, is looking to mop up traders in competing exchanges as it extends its VIP program into January.
By Victor Ugochukwu · Oct 26, 2020 . 5min read
Binance VIP Invitation Program aggressively woos large volume cryptocurrency traders on other exchanges into Binance with benefits. Specifically, based on traders’ volume, on other exchanges, Binance offers them two months, a VIP tier that is one level higher if they had traded on Binance.
Binance is targetting large volume traders with a minimum trade threshold of 50 BTC on Spot or 250 on Futures. And the traders must have marshalled this volume within the last 30 days.
Traders who qualify for the Binance VIP tier program enjoy fee discounts and other benefits across the entire Binance ecosystem. However, for the new VIP members from other exchanges, Binance will adjust their VIP status after two months. This will be based on their actual trading volume on Binance according to the VIP tier requirements.
More importantly, every VIP member must have to undergo the KYC/AML exercise mandated by the exchange. The target traders are large volume traders who trade nothing less than $654,000 in trade volume within 30 days.
Binance possibly using the VIP invitation program to compete fiercely on the derivatives market.
Binance is undoubtedly the largest spot exchange in the world. Even though we have seen a huge leap in DEX trading this year due to the Cambrian explosion in DeFi, Binance still maintains its lead in this category.
However, when it comes to derivatives (margin and futures) trading, it is gradually working itself to become the most significant player. In that arena, BitMEX usually was the king except for recently, due to its problem with regulators. Huobi Global, for instance, did $4.2 billion in derivatives trading within the last 24 hours. Binance did $3.9 billion and BitMEX at $1.1 billion according to recent data from Coinmarketcap.
With the Binance VIP invitation program and the benefits that accrue to traders, perhaps Binance could shoot up its derivative trade game and solidify its position as we saw it do with spot trading just within three years of launch.
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