Victor Ugochukwu · Oct 26, 2020 . 5min read
Coinbase Pro to pass off transaction fees to customers amid rising network fees
Effective immediately, Coinbase Pro will charge a fee based on our estimate of the network transaction fees that we anticipate paying for each transaction.
By Victor Ugochukwu · Sep 18, 2020 . 6min read
In a recent update which has come off as a rude shock to Coinbase Pro customers, the exchange announces it will now start passing transaction fees to them due to Ethereum’s persistent network fees.
Coinbase Pro tweeted with its official handle to alert its customers stating that its latest decision takes effect immediately,
Starting today, Coinbase Pro will pass along network fees directly to our customers. These fees (sometimes referred to as “gas fees” on the Eth blockchain) are paid directly to crypto miners that process transactions and secure the respective network.
Historically, Coinbase Pro absorbs the network’s transaction fees to enable a smooth trading experience for its customers. However, even though it brags this to be a unique advantage to many, it still complains. In fact, some users claim that it is the worst exchange in terms of transaction and withdrawal fees. So, with the latest Coinbase Pro update,
Coinbase Pro will charge a fee based on our estimate of the network transaction fees that we anticipate paying for each transaction.
What this means is that the exchange’s transaction fees will now be adjusted based on network traffic. After all, Uniswap which has once overrun Coinbase Pro in daily transactions volume have users paying an outrageous amount as fees. But many have also absolved Uniswap of the blame of gas costs as it is technically not the cause of high network fees but Ethereum saying Coinbase Pro’s new policy is anti-customer. In fact, a Twitter user responding to the thread said:
What a terrible thread. This is the best way to never interact with customers and lose them rapidly hahahahaaa wtf. Uniswap gives millions and you dump a bill on customers…. There’s a lesson here guys
New Coinbase Pro transaction fee policy similar to the Argent Wallet case
The Coinbase Pro latest fees policy, primarily due to network activity on Ethereum, brings to mind another issue. Earlier, we reported on Argent Wallet’s decision to stop supporting free ETH transaction on its product which didn’t go down well with users. Argent launched on the mantra “no transaction fees” but was shaken due to Ethereum’s growth and congestion.
However, similarly, the Argent case might be, Coinbase Pro’s decision comes off as interesting. The exchange boasts of at least 13 million users to 22 million monthly visitors on its website. It is also among the top 5 leading global exchanges which has been operational since 2014. However, it has other products like Custody service, which newer exchanges like Binance overtook it just within a short time of launch.
As at press time, Coinbase Pro’s 24-hour daily trade volume was around $428 million while Uniswap is $413 million.
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