Coinbase Stock Went Down After the Company Said It Would Change Its Fee Structure to Reflect Trading Volumes and Price Changes.
Coinbase Stock (NASDAQ:COIN)
Coinbase stock plunged on Monday after the company announced to change in its fee structure.
In the news published on Monday, Coinbase Global (NASDAQ:COIN), the largest cryptocurrency exchange in the United States when measured by trading volume, announced that it plans to implement a new fee structure to reflect changes in global cryptocurrency trading volumes and prices.
The change will take effect on Tuesday at roughly 5:00 p.m. Eastern Time and will cut the monthly trading volume required to qualify for the mid and top tiers of our fee schedule, according to the announcement made by Coinbase Global (NASDAQ:COIN). This move was made as prices for significant cryptocurrencies continued to fall from their highs in November 2021.
According to the revised fee schedule, there will be no adjustment to the taker and maker fees for tiers that fall between $0K and $15M. The trailing 30-day volume will continue to be used in the calculations for volume tiers.
However, the taker cost will be increased to 16 basis points, and the maker charge will remain at 6 basis points in the $15M-75M (mid) category, even though both of these fees were previously reduced by 2 basis points.
The largest tier, which is $400 million or more, will have a taker fee of 5bps, with the delta ranging from 0bps to -3bps. The maker charge will not change from 0bps going forward.
Coinbase Global (NASDAQ:COIN) opened an investigation into potential delays in deposits and withdrawals at the beginning of September. In a notification released at 12:52 a.m. Eastern Time on Thursday, Coinbase (NASDAQ:COIN) stated that it is investigating a problem in which different networks are experiencing delays in processing deposits and withdrawals.
Around 1:20 p.m. Eastern Standard Time, the notice was taken down from the status page.
It was announced on Wednesday that a problem that had been creating delays in processing ETH/ERC-20 deposits on Coinbase.com and Coinbase Pro had been fixed.
A statement by an analyst at J.P. Morgan named Kenneth Worthington predicting that Coinbase stock will be a significant benefactor of the Ethereum Merge was published last month.
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Author: Shariq Khan
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