Coinbase Pro passing on transaction fees to users starting today

[TravelMug]

According to their tweet.



https://twitter.com/CoinbasePro/status/1306641678506360832

As a result of the whole DeFi hype, fees are starting to spike that high that Coinbase decided to pass the fees on their customers. It didn't mentioned BTC though, but I will assume that if similar issues (like 2017) wherein the bitcoin fees skyrocketed, I wouldn't be surprised if Coinbase pull a similar stunt. And as far as I know they are also batching withdrawal transactions (correct me if I'm wrong), so it already are cutting down on network fees already.

Bold move on them to pass it to their customers, and I'm sure this won't be taken lightly and we might see an exodus of withdrawals and moving their funds to other exchanges.

And this is probably another good case to try and use DEX now.

[bitmover]

Do they have a withdrawal fee? Those withdrawal fees are so high that they usually paid (by far) the mining fees.
Those exchanges make a lot of money in those fees.... We certainly need more good and reliable exchanges (bad and not reliable we already have a lot lol)

[suchmoon]

Do they have a withdrawal fee? Those withdrawal fees are so high that they usually paid (by far) the mining fees.
Those exchanges make a lot of money in those fees.... We certainly need more good and reliable exchanges (bad and not reliable we already have a lot lol)

They didn't until now, one of the few good things about Coinbase. However I don't think there will be exodus as the OP is claiming. Users who have already passed KYC with Coinbase don't have much to gain by moving elsewhere. Most other centralized exchanges already charge withdrawal fees and DEX is not for everyone.

[figmentofmyass]

As a result of the whole DeFi hype, fees are starting to spike that high that Coinbase decided to pass the fees on their customers. It didn't mentioned BTC though, but I will assume that if similar issues (like 2017) wherein the bitcoin fees skyrocketed, I wouldn't be surprised if Coinbase pull a similar stunt.

it's a site-wide policy. their support page makes no distinction between bitcoin, ethereum, or any other network. they are now charging miner fees for bitcoin withdrawals too.

Bold move on them to pass it to their customers, and I'm sure this won't be taken lightly and we might see an exodus of withdrawals and moving their funds to other exchanges.

i doubt it. i'm surprised they didn't do this sooner tbh. last year, they raised fees from 0% to 0.5%---some of the highest fees among all spot exchanges. they did it because they knew their brand/market share and liquidity were dominant enough to survive any exodus, and they were right. they are still probably the biggest spot exchange, certainly in the USA anyway.

they are planning for the next bubble. during the last bubble in 2017, they were still in growth/investment mode, using zero fees as a way to build a solid customer base and market depth. now they no longer need to do that. they feel it's time to make hay while the sun is shining. that's why they are considering a public listing too, i'm sure.

[SFR10]

Bold move on them to pass it to their customers, and I'm sure this won't be taken lightly and we might see an exodus of withdrawals and moving their funds to other exchanges.

I'm one of the users that had a bad experience with them ^{[back in the day]} but if their "network fee estimations" are on point ^{[unlike some other exchanges]}, then it'll have little to no impact on their customers.

And this is probably another good case to try and use DEX now.

Even without Dex in the picture, there are a lot of other reasons for avoiding their services.

[joniboini]

Sooner or later exchanges would do this. But I bet they'll still get some profits from it. Last time I tried to withdraw USDT, an exchange charge me around $200 when the average fee is 100 gwei or less. Maybe they process it in batch, maybe individually, but it's clear they're still trying to take some profits.

ETH really needs to improve their scalability.