Swiss crypto exchange platform Shapeshift has announced the launch of its own token dubbed FOX. Released on Wednesday, the FOX tokens will trade without charges and 100 FOX tokens will be awarded to users who sign up for it.
This is a major move by Shapeshift not only to release a loyalty asset, but also to solve problems with custodial exchanges. Shapeshift CEO Erik Vorhees explained this in a tweet saying:
“Too many people still leave their funds at custodial exchanges, because non-custodial solutions (DEX’s and swap services) have been either illiquid or high-priced. With 0% commission trading, Shapeshift now solves both of those problems.”
An official blog post explains that users get the 100 FOX tokens and if they decide to hold it without spending, also get a bonus “$1,000 of free trading volume on a rolling 30 day basis.” This basically means that for every unspent FOX token the owner gets $10 free trading every 30 days.
Vorhees has also mentioned that the free trading will be in perpetuity and Shapeshift does not intend to change this. Speaking with The Block, the CEO rebuffed the idea that zero-commission trading will negatively impact the company’s earnings. In fact, Vorhees believes that Shapeshift will see a 30% rise in the number of accounts opened.