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South Korean cryptocurrency exchange Coinone announced it will switch to a 0% trading fee rate across all assets starting at 11 a.m. on the 26th, effective until further notice. Users who redeem a voucher on the Coinone website or app can trade all assets without fees for 30 days, with no restrictions on reissuance. The move follows Korbit operator DigitalX’s decision to waive fees on all Korean won market assets for one year starting August 24, while Upbit operator Dunamu is also running a limited-time fee waiver on stablecoin trading. Coinone is additionally hosting a daily trading volume ranking competition with 70,000 USDT in total prizes. As exchange earnings deteriorate amid a market downturn, concerns are mounting that a fee-based price war over a core revenue stream could reignite.
Key Elements
South Korean cryptocurrency exchange Coinone announced on the 26th that it will switch to a 0% trading fee rate across all assets starting at 11 a.m., effective until further notice. Users who redeem a voucher on the Coinone website or app can trade all assets without fees. The voucher benefit lasts for 30 days from the date of issuance, and users can reissue vouchers without any eligibility or frequency restrictions.
Coinone had previously eliminated OpenAPI trading fees on the 21st. By extending the fee waiver to trades executed through personal OpenAPI keys, the exchange now effectively offers fee-free trading to virtually all users and trade types, with the exception of certain services.
The move comes on the heels of Korbit operator DigitalX’s decision to waive trading fees on all Korean won market assets for one year starting August 24. Upbit operator Dunamu is also running a fee-free event for stablecoin trading on its Korean won market. The fee-cutting competition among Korean won-based cryptocurrency exchanges is spreading rapidly.
To commemorate the fee elimination, Coinone will host a “Daily Trading King Ranking Competition” across five assets over four weeks through the 20th of next month, with a total prize pool of 70,000 Tether (USDT). The eligible assets are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Dogecoin (DOGE), and USD Coin (USDC). Participants can check real-time rankingsume will receive tiered prizes based on their ranking
A Coinone representative said, “We made this decision to go beyond easing customer fee burdens and maximize the tangible benefits customers can gain from using Coinone,” adding, “We will continue to strengthen differentiated benefits to solidify our position as ‘the exchange with the most benefits.'”
Fee-Free Competition Spreads Among Exchanges
This is not the first time cryptocurrency exchanges have engaged in fee-free competition. In 2023, when Bithumb eliminated trading fees across all assets, other exchanges followed suit with fee waivers or reductions.
With Coinone’s latest decision, the fee policies of South Korea’s major Korean won market exchanges are summarized as follows:
| Exchange | Operator | Fee-Free Policy |
|---|---|---|
| Coinone | Coinone | 0% trading fee on all assets (upon voucher issuance, until further notice) |
| Korbit | DigitalX | Trading fees waived on all Korean won market assets for one year (from August 24) |
| Upbit | Dunamu | Temporary fee waiver on stablecoin trading in the Korean won market |
Note: Bithumb implemented a fee-free policy across all assets in 2023, but its current policy requires separate verification.
Concerns Over Price War Amid Deteriorating Profitability
With trading volumes shrinking and exchange earnings deteriorating amid the recent cryptocurrency market downturn, it remains uncertain whether the fee-free competition can be sustained over the long term. Since trading fees are a core revenue stream for exchanges, prolonged fee waivers could pressure profitability.
Within the cryptocurrency industry, concerns are emerging that while eliminating trading fees can boost trading volume and user acquisition in the short term, it may also increase profitability burdens for exchanges that rely on trading fees as their primary revenue source.
An industry insider said, “Whether exchanges can retain the trading volume and users they attract after the fee-free policies end will determine the actual outcome of this fee competition.”
Coinone has not specified an end date for its fee elimination, stating it will last “until further notice,” while Korbit has set a one-year timeframe. Upbit is operating its waiver on a temporary basis limited to stablecoins. With exchanges differing in the scope and duration of their fee waivers, attention is focused on how the competitive landscape will evolve going forward.
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Source: finance.biggo.com
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