Upstart crypto exchange LVL (pronounced ‘level’) will be looking to compete with the already established Coinbase and Gemini in the US
The exchange announced it would not charge any trading fees as it attempts to draw users away from giants Coinbase and Gemini. Previously the exchange had an allowance where subscription users were not charged any trading fees. LVL is backed by several influential figures in the finance space, notably Morgan Creek Digital founder Anthony Pompliano and Bitcoin advocate Jimmy Song.
The exchange also has the support of financial institutions. It recently collaborated with MasterCard to launch two debit cards that will enter the market early next year.
“We’ve always been behind a subscription paywall, but now we’re just making our entire service free to use. You can buy and sell bitcoin, you can use the plastic debit card. So now in North America, there’s a regulated exchange that’s 100% free to use,” the company’s chief executive Chris Slaughter revealed.
LVL will be looking to capitalise on the lack of competition in the US, where exchanges use similar pricing schemes. Slaughter asserted that the exchange was willing to go above and beyond to fight the monopoly, even if it is just an upstart.
“We are a super scrappy business contender by nature,” he said. “Like, we only have seven people, but we have the first Mastercard approval in North America. We’re registered with FinCEN. And not only do we have bank accounts, they are full checking accounts.”
LVL will be counting on its distinct revenue model to disrupt the monopoly. The exchange earns revenue by charging a $3 withdrawal fee that covers the network fees as well. A $5 fee applies for wire and same-day bank transfers. This fee finances LVL’s risk
