BlockFi creates new fee structure for ETH withdrawals in order to cover the ETH gas costs and will go into effect on December 1st so let’s find out more in our latest cryptocurrency news today.
Su Zhu as the Three Arrows Capital founder believes that ETH fees are out of control which is why crypto companies are changing their pricing to avoid the losses on ETH. BlockFi creates new fee structure as the crypto lending firm that battles plenty of securities regulators over its high-interest savings accounts announced that it will no longer offer free withdrawals of ETH because of the increasing transaction costs on the ETH network. The announcement applies to all tokens that run atop the ETH network like Pax gold, Uniswap, Chainlink, and the Basic Attention Token.
Bitcoin, Litecoin and stablecoin products are still unaffected by the news. BlockFi users previously were able to make one crypto withdrawal and one stablecoin withdrawal each month with no costs but the subsequent withdrawals were charged with an ETH removal that brought a 0.02 fee. Starting December 1, each ETH withdrawal will carry a 0.015 ETH fee with UNI, PAXG, LINK, and BAT carrying their own charges. With the current rates, that’s about $64 to move the asset out of the BlockFi savings account and into the users’ hands. The platform wrote that they have no intention of profiting off from the withdrawal fees. However, the change puts it at odds with rivals like Celsius that are fending off the inquiries from states over the securities law violations.
On December 1, 2021 (UTC), we’re updating our withdrawal fees due to the increasing transaction costs on the Ethereum network.
ETH, LINK, PAXG, UNI, and BAT will move to a rate-based withdrawal fee structure and no longer support free withdrawals. pic.twitter.com/TR224Rk6ZV
— BlockFi (@BlockFi) November 24, 2021
Celsius boasted that it has no withdrawal fees, transaction fees, transfer fees, early termination fees, and origination fees. Of course, crypto savings platforms compete on more than just the fees as they all dangle huge interest rates for those that store their crypto and then use the aggregated funds to hand out the loans that collect interest of their own. Ethereum fees were the subject of discussion for a few months now as the average transaction costs often surpass $50 depending on the day. The bad image came up after Zhu announced he was leaving the network and he will be taking his capital with him as Ethereum didn’t serve the regulator users. Avalanche and Solana on the other hand positioned themselves as low-cost and being uncongested.