In a bid to attract new users and combat declining market share, Binance is launching a VIP program that welcomes traders with significant volume in traditional assets alongside cryptocurrencies.
Previously, only users with high crypto trading volume on Binance qualified for VIP status and its accompanying benefits like lower fees and exclusive events. Now, traders can combine their crypto and traditional asset volume from up to two external platforms to reach the VIP threshold.
This move comes as Binance’s derivatives market share dips for the seventh consecutive month, while its spot market share increases. The broader market, however, has seen a rally this year, fueled by the launch of Bitcoin ETFs.
“The successful listing of Bitcoin spot ETFs demonstrates growing market demand for cryptocurrencies and a shrinking gap between traditional and digital assets,” said Catherine Chen, head of Binance VIP and Institutional. “This program aims to help high-volume users of traditional platforms bridge the gap and enter the crypto market.”
VIP perks include reduced trading fees, exclusive industry events, and potential access to private investment opportunities.
However, Binance’s VIP program has faced past controversies. Some VIP users were involved in lawsuits by US regulators, leading to a recent $4.3 billion settlement and guilty pleas from Binance and its founder.
It remains to be seen whether this new initiative, aimed at bridging the gap between traditional and crypto markets, will be enough to attract new users and reverse Binance’s declining derivatives market share.
