Chris Slaughter, the CEO of Level, recently said that cryptocurrency exchanges are making money by exploiting the sheer lack of knowledge among users. He appeared on Anthony Pompliano’s podcast to discuss crypto exchanges and the “holes” in the industry.
Slaughter calls out exchanges
Slaughter adopted a stern and unforgiving approach towards digital currency exchanges, saying they make money by exploiting customers. He said,
“The way crypto exchanges make money is usually by exploiting the ‘lack of knowledge’ of the retail customer, to extract the maximum amount of profit out of that end user.”
He thinks that when capitalist forces finally start making big moves in the industries, platforms and technologies will get commoditized, and prices will eventually come down.
He specifically mentioned Coinbase, and it’s high processing and transaction fees. He said that the tag of “Pro” creates a siloed experience for the new users of the platform who are already paying a very high fee for their crypto transactions.
Is Level the answer to these problems?
Slaughter said that Level, a cryptocurrency exchanges, is based on a transparent and flat-fee model. Users pay a monthly fee and enjoy unrestricted trading on the platform. They are not expected to shell out extra money for each new transaction that would directly affect their profit margins. He noted that Level is trying to provide a frictionless expiree in cryptocurrencies by offering an exchange as well as debit cards supporting both fiat and crypto.
The Level chief also thinks that Bitcoin will eventually displace cash/fiat in the near future. Note that Level brings a subscription model to crypto trading, just like streaming services Netflix has (Find out how to buy Amazon stocks). You pay one flat fee for a month and trade throughout the month. The company was founded by Chris Slaughter and has big crypto names like Willy Woo and Jimmy Song advising the venture. Woo is their product advisor while Song is the technical advisor.
The company even has several community advisors who run popular crypto Twitter accounts like Josh Rager, The Crypto Dog, Panama Crypto, Joe Zabbs, NebraskanGooner, Ambroid, and Marsmensch.