Coinbase tests zero trading fees feature

Cryptocurrency exchange Coinbase is testing a new subscription feature Coinbase One, which would offer customers zero trading fees. Users would be allowed to trade cryptocurrencies with no trading costs.

Coinbase One is currently in its beta launch phase, the exchange said in a blog post on its official website. A limited number of users would be allowed to enter the beta program.

Coinbase One beta users would receive $1 million in account protection and 24/7 direct phone support from a member of the team.

The exchange has over 73 million verified users, as per data from Statista, maneuvers and trading fees comprise a major chunk of Coinbase's revenue. The cryptocurrency exchange made over $2.2 billion in income from transaction fees alone in the last quarter of 2021.

CFO Alesia Haas said during Coinbase's fourth-quarter earnings call: "We're diversifying this revenue stream and expanding our non-transaction revenue streams."

It would be interesting to see how this new revenue model helps the cryptocurrency exchange as it maneuvers its way out of a slump. The exchange had reported lower monthly transacting users in this quarter and had also marked a decline in the total trading volume. The share price has also been slipping lately causing concerns for the investors.