The crypto exchange ShapeShift has agreed to eliminate fees on some exchanges for registered users.
ShapeShift, launched in 2014, was one of the first exchanges based on a non-custodial model. Unlike the classic exchanges, which store on behalf of users the private keys of the wallets used and therefore also their funds, ShapeShift allows users to retain the private keys.
On the one hand, this protects against theft due to hacking of the platform or losses of funds due to the closure of the company, while on the other, it gives accountability to the user who must take full responsibility for storing private keys and funds.
The aim of the initiative is precisely to give more responsibility to users and to promote the personal custody of cryptocurrencies towards the average user.
To be precise, users already registered on the exchange will automatically receive 100 FOX tokens and will be able to take advantage of the absence of fees as long as they remain in possession of the tokens. In fact, depending on the number of tokens in their possession, they will be able to make a certain amount of free transactions every 30 days.
Thanks to this initiative the exchange foresees an increase of 30% of the accounts, and also intends to sell the aforementioned FOX tokens. To cope with the reduction in revenue, ShapeShift will sell its tokens to new customers who want to take part in this initiative, provided this new business model is successful.
However, ShapeShift does not plan to become a fully decentralised platform but wants to remain an open-source, permissionless on-chain platform on which users use smart contracts on the Ethereum network to exchange tokens.
ShapeShift CEO and founder, Erik Voorhees, said:
“The reason that crypto is important is that it allows people to have control of their own assets. But unfortunately most people just give them to a custodial third-party exchange. We hope that by eliminating commission, we will encourage people to go over to the non-custodial model. I think self-custody is where the crypto industry is heading to in the long term”.