BlockFi creates new fee structure for ETH withdrawals to cover ETH gas costs and comes into force on December 1stNS Let’s find out more today in our latest crypto news.
Su Zhu, the founder of A Couple of Arrows Money, believes ETH fees are spiraling out of control, which is why crypto companies are changing their prices to avoid losses at ETH. BlockFi is creating a new fee structure as crypto lenders facing many securities regulators for their high-yielding savings accounts have announced that they will no longer offer free ETH withdrawals due to the cost of transaction fees on the ETH network. The announcement applies to all tokens running in the ETH network such as Pax gold, Uniswap, Chainlink and Basic Attention Token.
Bitcoin, Litecoin, and stablecoin products were unaffected by the news. Previously, BlockFi users were able to make one crypto withdrawal and stable withdrawal per month with no fees, but there is an ETH discard fee on subsequent withdrawals which results in a fee of .02. From December 1st, every ETH withdrawal with, 015 ETH with UNI, PAXG, Url and BAT will be charged separately. At current rates, it’s about $ 64 to move assets from a BlockFi savings account to users’ hands. The platform wrote that they do not intend to take advantage of the withdrawal fees. The change, however, sets it apart from competitors like Celsius, which combats requests from states for violations of securities laws.
On December 1st, 2021 (UTC) we will update our withdrawal fees due to increasing transaction costs on the Ethereum network.
ETH, Connection, PAXG, UNI and BAT will switch to a tariff-based withdrawal fee structure and will no longer support free withdrawals. pic.twitter.com/TR224Rk6ZV
– BlockFi (@BlockFi) November 24, 2021
Celsius boasts that it has no withdrawal fees, transaction fees, wire transfer fees, early termination fees, and introductory fees. Of course, crypto-saving platforms don’t just compete on fees as they all charge high interest rates from people who hold their cryptocurrencies and then use the aggregated funds to save money. Ethereum fees have been discussed for several months as the average transaction cost often exceeds $ 50 depending on the day. The bad image came after Zhu announced that he would be leaving the network and taking his capital with him as Ethereum does not serve regulatory users. Avalanche and Solana, on the other hand, position themselves as inexpensive and undervalued products.