Coinbase and Robinhood slump as Binance announce zero trading fees

Shares in crypto exchanges Coinbase and Robinhood were down 5.7% and 1.1% respectively after Binance.US, the American arm of the prominent crypto exchange Binance, announced that it has cut bitcoin trading fees to zero for select pairs.

All new and existing customers of Binance.US will pay no fees when trading bitcoin against the US dollar, tether (USDT), USD Coin (USDC) or Binance USD (BUSD).

The announcement comes at a time when crypto exchanges are facing tough economic headwinds amid a broader market downturn.

Last week, Coinbase announced it was laying off 18% of staff to prepare for difficult market conditions ahead.