Luxembourg-based crypto exchange Bitstamp has abandoned plans to charge a monthly fee on inactive users with low balances after massive backlash from the community.
The exchange announced today that they are scrapping the idea, saying:
“After listening to our community’s response, we’ve changed course. There will be no inactivity fee.”
Bitstamp announced last week that, starting August 1, they would charge non-US customers who had balances of less than EUR 200 a 10-euro monthly fee if they hadn’t been active for the last 12 months.
The inactivity fee was met by a wave of criticism from the community members.
“This is so disappointing BitStamp. It’s actually pathetic. You’re charging the lowest holders approx 5% of their account balance so they are “forced” to trade or stake with you!!?? How is this even legal,” one popular Twitter user asked.
“Inactivity fee is the lamest thing I have ever seen,” another user said, who also claimed they will stop using the platform.
Nevertheless, this is not the only instance where a crypto service had to change course after backlash from the community recently.
In mid-June, Solana (SOL)-based borrowing and lending service Solend had to scrap plans to take over the protocol’s largest account after the crypto community criticized the idea, noting that it contradicts the “decentralized” nature of crypto.
– Inactivity Fee on Bitstamp
– Bitstamp Clarifies Inactivity Fee Policy
– Coinbase Ranks Top Among Crypto Exchanges, ‘Oligopoly’ Seen on Horizon
– 7 in 10 Retail and Institutional Investors Plan to Buy More Crypto, Bitstamp Survey Finds
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