Upstart crypto exchange LVL will compete with the already developed Coinbase and Gemini in the US (pronounced ‘level’).
The exchange revealed that while it aims to pull users away from Coinbase and Gemini giants, it does not charge any trading fees. The exchange previously had an allowance where no trading costs were paid to subscription customers. In the finance room, LVL is endorsed by many prominent figures, notably Morgan Creek Digital founder Anthony Pompliano and Bitcoin advocate Jimmy Song.
The exchange also has financial institutions’ support. It partnered with MasterCard recently to launch two debit cards that will reach the market early next year.
The companyâ€™s chief executive Chris Slaughter revealed:
â€œWeâ€™ve always been behind a subscription paywall, but now weâ€™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, thereâ€™s a regulated exchange thatâ€™s 100% free to use.â€
In the US, where exchanges use similar pricing structures, LVL will be looking to capitalize on the lack of competition. Slaughter believed that, even though it was only an upstart, the exchange could go above and beyond to combat the monopoly.
â€œWe are a super scrappy business contender by nature. Like, we only have seven people, but we have the first Mastercard approval in North America. Weâ€™re registered with FinCEN. And not only do we have bank accounts, they are full checking accounts.â€
To break the monopoly, LVL will be counting on its separate revenue model. By charging a $3 withdrawal fee that also covers the network costs, the exchange receives money. For wire and same-day bank transfers, a $5 fee applies. This fee supports the risk provisioning credit of LVL to users while generating revenue for the exchange.
The premium package costs $9 a month and comes with a live chat option with a banker. This fee helps to bring the network liquidity to LVL Autopilot.
â€œBased on our current number of pro users, and the way we expect liquidity to grow following this announcement, we expect to pass Coinbaseâ€™s liquidity within the 2% band in January.”
Services from LVL are available on this account in 28 states and territories. These states account for 60% of the US population collectively, according to Slaughter. In addition, the CEO said the exchange has a target of serving 94% of Americans by the end of nextyear.