ShapeShift, known for years for its no-questions asked instant transmissions has announced a new feature: mandatory memberships.
The move isn’t immediate and they promise it will come with new features, but it is sure to disappoint many. Shapeshift was a near revolution when it launched and it quickly became a mainstay of the cryptocurrency industry. While they weren’t always the cheapest way to purchase coins, they offered a quick, simple and fairly anonymous way to change coins quickly.
The memberships will require personal information.
The move, it seems, is in response to the current popularity of ICOs. There is no indication in the announcement that Shapeshift was pressured or forced by law enforcement to make the move. But it does seem that they are responding to the current regulatory[1] situation.
“The practice of requiring customers to hand over personal private information is one we’ve struggled with since inception. To the extent that digital asset technology remains a legal grey area, we need to be prudent and thoughtful in our approach as we navigate the regulatory environment.”
ShapeShift also gave two other reasons for the decision.
Adding memberships does allow ShapeShift to offer services they haven’t in the past, but the most controversial will likely be their Ethereum based FOX token. Billed as a sort of loyalty program, the FOX token is supposed to enable users to have higher transaction volumes and lower fees.
Eventually, there will be five membership levels, level 1 is the only level available now and “is free and open to everyone” according to the announcement.
Levels 2-5 will be based on how many FOX tokens the user holds. The specifics of the benefits and levels have not been announced.
The FOX token is interesting. Crypto tokens as a reward program is something that
