Upstart Crypto Exchange LVL (pronounced “Level”) will try to compete with the already established Coinbase and Gemini in the USA
The exchange announced it would not charge trading fees as it tries to discourage users from giants Coinbase and Gemini. Previously, the exchange had an allowance that didn’t charge subscription users any trading fees. LVL is backed by several influential financial figures, notably Morgan Creek Digital founder Anthony Pompliano and bitcoin attorney Jimmy Song.
The exchange is also supported by financial institutions. In collaboration with MasterCard, two debit cards were recently launched that will be launched early next year.
“We’ve always been behind a subscription paywall, but now we can only use our entire service for free.” You can buy and sell bitcoin, you can use the plastic debit card. There is now a regulated exchange in North America that is 100% free to use, ”said company director Chris Slaughter.
LVL will attempt to capitalize on the lack of competition in the US, where exchanges use similar pricing systems. Slaughter claimed the exchange was ready to do anything to fight the monopoly, even if it was just an upstart.
“We’re a super seedy business contender by nature,” he said. “We only have seven employees, but we have the first Mastercard approval in North America. We are registered with FinCEN. And not only do we have bank accounts, they are full checking accounts as well. “
LVL will count on its disparate revenue model to disrupt the monopoly. The exchange earns income by charging a $ 3 withdrawal fee that also covers network fees. There is a $ 5 fee for transfers and same-day transfers. This fee finances LVL’s risk provisioning for users while generating income for the exchange.
The premium package, which includes a live chat option with a banker, costs $ 9 per month. This fee helps LVL Autopilot bring liquidity to the platform.
“Based on our current number of Pro users and the way we expect liquidity to grow after this announcement, we expect Coinbase’s liquidity to be within the 2% band in January,” explained Slaughter.
LVL’s services are available in this account in 28 states and territories. According to Slaughter, these states together make up 60% of the US population. The CEO said the exchange aims to serve 94% of Americans by the end of next year.