Bitstamp Exchange Canceling plans to introduce an inactivity fee just five days after the fee is announced.
The firm planned to charge non-US users $10.18 per month for accounts with less than $200 in assets that have been dormant for a year.
The planned move drew widespread criticism from the industry, with some noting the desperation to stay away amid the market carnage.
Bitstamp’s trading volume took a major hit by falling below $60 million, but in a U-turn, the exchange has abandoned the now controversial plan.
“After hearing feedback from our community, we have changed course,” the firm said in a blog post. CEO JB Graftius said in a separate statement that the exchange understood everyone’s concerns before arriving at a decision and that the company has not deviated from its goal of having “a secure and reliable trading platform.”
Bitstamp has no risk of crypto companies failing
After news of the planned inactivity fee became public, there was speculation that Bitstamp was facing financial problems. Analysts predict the exchange could pose significant risks to troubled crypto firms.
However, Bitstamp dismissed claims that it had been in contact with companies “under stress”. It states that clients’ fiat and crypto holdings are kept separate from corporate assets and noted that all clients can “continue to enjoy all of our services regardless of balance” on their accounts.
Some exchanges are battling the bad market conditions by introducing comprehensive policies. Smaller exchanges such as Coinflex and Wold have suspended withdrawals, while larger exchanges such as Coinbase have laid off up to 20% of their workforce.
Some exchanges are better insulated than others
It appears that not all crypto firms are going through the crypto winter. Binance and FTX are bucking the trend by announcing plans to aggressively expand their workforce and introduce new products to customers.
Both the firms are on a spending spree to prevent the failed firms from spreading throughout the ecosystem. And Binance has taken things up a notch by eliminating fees for bitcoin trades on its platform.