Non-custodial cryptocurrency trading platform ShapeShift has launched its FOX token this week that will allow hodlers of the token to trade on the ShapeShift platform for free in perpetuity.
In its effort to promote financial self-sovereignty, the exchange aims to attract more people to the platform which provides the users enough incentive to hold their own keys.
ShapeShift’s CEO Erik Voorhees made the announcement on Wednesday inviting new users to the platform as well as revealing that current users will also receive 100 free FOX tokens.
Each token will allow its holder to trade on the ShapeShift platform for free up to a limit of $10 every 30-days on a rolling over basis. This means that every user on the platform is now able to trade for free saving as much as $1,000 worth of trading fees every month.
Holding more tokens will entitle the owner to qualify for even more savings in the fees department. Voorhees said that this feature is not time-bound. Holders of the FOX token will enjoy free transactions on the platform for as long as they hold the FOX tokens.
“This isn’t a promo. This isn’t a temporary offer. This is trading of digital assets without a trading fee, available today to all ShapeShift platform customers,” Voorhees wrote in a blog post on Wednesday. “You don’t have to spend them or lose them to get the benefit.”
But what is the benefit of having FOX token especially to the platform?
Voorhees believes that this feature will attract more users to the platform which as mentioned earlier is promoting self-sovereignty.
The more users there are on the platform the higher the liquidity of assets as well as lower the fees paid across the industry as other platforms aim to compete.
“It wouldn’t surprise me if other companies tried to do the same thing, or if fees depressed throughout the whole market,” said Jon ShapeShift’s COO. (ShapeShift does not disclose employee second names.)
You may be wondering about the platform’s profitability now that it is offering free trading through its token ecosystem.
According to Voorhees, the exchange will be selling the tokens to new users and existing users who wish to gain more transaction savings above what the free 100 FOX tokens offer.
Not only that but also there are users who may wish to sell their tokens and this means that they will not have FOX tokens to save on their trade fees.
No FOX No Free transactions! There will still be trades made on the platform that attracts a trading fee.
Voorhees expects the new incentive plan to attract an extra 30% new signups on the platform over the coming month.