LVL Exchange Backed By Pomp, Song And Woo Removes Trading Fees To Compete With Coinbase And Gemini

Cryptocurrency exchange LVL wants to take on US giants Coinbase and Gemini by removing trading fees.

A super scrappy contender

According to an announcement today, LVL (pronounced "level") is making its entire service free. LVL, which is supported by Anthony Pompliano of Morgan Creek Digital and bitcoin supporters (find out how buy Bitcoins) Jimmy Song and Willy Woo, previously had no trading fees but only offered services for subscription users.

LVL is also currently partnering with Mastercard with the aim of releasing two debit cards in early 2021. A standard plastic debit card will be available to free basic subscription users with a one-time $ 10 contribution, while a metal Mastercard is included with three months of Premium subscription to LVL.

“We've always been behind a subscription paywall, but now we're making our service entirely free,” said Chris Slaughter, CEO of LVL. "Now in North America there is a 100% regulated and free exchange".

LVL's point is that large US exchanges like Coinbase and Gemini with remarkably similar pricing patterns create a lack of competition. “We are a super scrappy business contender by nature,” he said.

“For example, we only have seven people 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 complete current accounts ”.

How does the exchange make money?

The exchange makes money, Slaughter explained, by charging $ 3 for withdrawals, which mostly covers network fees. (Coinbase charges a $ 1 - $ 5 network fee). The trading platform also charges a $ 5 bank wire and same-day wire transfer fee, which covers the exchange's risk provision credit for users and generates income for LVL, Slaughter said.

The $ 9 / month premium service, which also includes live chat with an expert, is the means by which LVL Autopilot brings liquidity to the platform. The system runs industry-standard market-making algorithms, providing liquidity to traders and generating passive income for the autopilot user, Slaughter says.

Challenge the competition in the USA

For now, LVL is available in 28 states and territories that represent 60% of the US population and is expected to serve 94% of Americans by the end of 2021, Slaughter said. “William [Woo] and Jimmy [Song] got involved so strangely early on that they're actually like founders,” Slaughter said.

"Pomp has entered the second half of last year and we have regular weekly meetings with him to talk about marketing." Song said the goal is also to attract users who are currently under pressure from fees.

"Level is a revolutionary exchange that will change the industry," Song said. "Unlimited trading allows for really cool innovations like auto-pilot market-making that will give users a return on their Bitcoins."