In yet another highly criticized move, Coinbase announced On March 15, 2019, that they would be making a series of changes to Coinbase Pro such as increasing fees and ceasing support for market orders.
Coinbase has once again found itself in hot water with their users. This comes just weeks after they were forced to defend themselves after their acquisition of Neutrino, they are facing criticism due to some new changes that have been announced.
On March 15, 2019, Coinbase announced that they would be making a series of changes to their Coinbase Pro platform which would come into effect on March 22, 2019. These changes, they stated, were in a bid to increase liquidity, enable better price discovery for trades, and to make price movements smoother.
The New Changes
One of the first of the new changes, and perhaps the most controversial, is the increase in fees; this is a part of their efforts to increase liquidity while reducing the delta between maker and taker fees. For transactions below $100,000, the maker fee is 0.15 percent while the taker fee is 0.25 percent while transactions between $100,000 and $1 million, the maker fee is 0.10 percent while the taker fee is 0.20 percent. This is based on a 30-day trading volume and a schedule was released that shows the fee schedule for up to a billion dollars.
Another change that was announced was that there will be updated maximum orders as a way to mitigate the impact of large orders on market liquidity. Tick sizes will also be updates and the tick sizes for ETC-USD, ETC-EUR, ETC-GBP, LTC-BTC, ETC-BTC will be decreased when the changes are implemented.
Coinbase Pro will also cease support for stop market orders from March 22, 2019. Instead, stop orders will be required it be submitted as limit orders with limit prices. Finally, a 10% market protection point for all market orders will be introduced on Coinbase pro and Coinbase Prime. Therefore, market orders that move the price in excess of 10% will stop executing and return a partial fill.
Much like with the Neutrino acquisition, users aren’t all too pleased with this new development, particularly the price increases, and have taken to social media to voice their concerns.