OKCoin’s decision to reinstate user trading costs this week has triggered a stir amongst bitcoin traders.
The bitcoin and litecoin exchange became the second major Chinese exchange to reinstate user trading fees this week, announcing on Monday (16th December) that a .3% fee would be charged on each and every bitcoin transaction produced and .two% for litecoin transactions.
A lot of bitcoin traders took to social media platforms such as Sina Weibo to complain about the perceived injustice of it all.
In response, Xu Mingxing, founding CEO of OKCoin, issued a statement on 17th December. In an emotionally-charged post that was published on the exchange’s forum, Xu alerted customers that the speculative craze could trigger significant harm to bitcoin’s prospects.
Xu added that the purpose of the charge policy is to alleviate speculative activities and is in compliance with the Chinese Central Bank’s spirit of strengthening regulation on bitcoin exchanges.
The CEO also noted that some traders have been engaged in plan-controlled speed trading in efforts to manipulate the bitcoin exchange rate, which has, in effect, exacerbated the currency’s volatility.
When highlighting the danger of more than-speculation, Xu cited an example of an accountant who told him that she spent her business’s entire month’s salary to purchase bitcoins to make a rapid profit.
The article concludes with a rather idealistic-sounding plea:
I want to reiterate what I have mentioned in numerous other occasions: Bitcoin is a social experiment and every single experiment carries the danger of failure.
If you are joining since an individual told you that its value will double, please go away If you have no notion what bitcoin is, please go away if you are a big-time international investor, please have some restraint, don’t put bitcoin in a scenario that will have no return.
We like its sophisticated mathematical design, and think in the excellent excellent behind it. We want to defend the experiment as we can.
When BTC China reinstated its costs, it published this statement:
Dear BTC China valued consumer: To stabilize the current turbulent Bitcoin industry and lessen possible industry manipulation, BTC China will end the % trading charge promotion, efficient right away, and revert to the .three% trading charge. We deeply apologize for the sudden adjust. BTC China, December 16, 2013
The firms took this action soon after news emerged that the Men and women’s Bank of China had met with the nation’s third-celebration payment businesses and told them they can no longer do company with bitcoin exchanges.
This news seemed to trigger a wave of panic promoting, with the value of bitcoin falling from around $ 880 early on Monday morning (GMT) to $ 422 at about 11:00 these days.
View OKCoin’s New Bitcoin and Litecoin Fees Lead to a Stir on Social Media on CoinDesk.
OKCoin’s New Bitcoin and Litecoin Charges Result in a Stir on Social Media
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