Jack Mallers, CEO of Strike, says Coinbase and other providers are overcharging customers to promote “shitcoins”
As of today, US customers of the payment startup Strike can buy and sell Bitcoin almost free of charge, the company said.
Strike, which recently revealed plans to help El Salvador adopt Bitcoin, aims to bring the platform to the “cheapest” Place in the world to buy BTC.
In a blog post published on July 1, the company said its new “Bitcoin tab“Will allow customers to buy BTC” with no out-of-market fee “. Strike only calculates 0.3% as a trade “Execution costs“, But will soon drop below 0.1% as more and more users take advantage of stack sats.
The startup hopes to be able to offer the service on a waiting list before it is made available to the general public in the next few weeks.
Strike targets Coinbase, Square and PayPal with “Grenade”
While Strike works to make getting Bitcoin as easy and cheap as it should be, it has challenged some of the biggest players in the industry to follow suit. According to founder and CEO Jack Mallers, Coinbase, Square and PayPal are overwhelming users.
Coinbase charges up to 3.99% fees, while Squares Cash App requires 2.2% and PayPal up to 3.49% to process transactions.
Mallers says these costs are high, and targets the biggest criticism of Coinbase’s “silly” fees, which he believes are the reason for the NASDAQ-listed company’s massive profit in the first quarter of 2021.
Coinbase had sales of over $ 1.8 billion and profits of $ 771 million in the first quarter of 2021. 94% of the profit came from fees.
“Since trading fees make up almost all of their business revenue, they use their expensive prices to subsidize the rest of their efforts, such as buying and selling. B. “Earning Crypto”. he fired.
“Make no mistake when you buy Bitcoin on Coinbase, support shitcoins”
According to Mallers, Strike has “thrown a grenade“Into the crowd and they have no choice but to compete and try to” really free “the market.
Although the Bitcoin tab will initially allow customers to purchase BTC, the plan is to expand its functionality so that users can pay with Bitcoin, receive BTC rewards, and save.