Bitfinex Removes $10,000 Minimum Investment Requirement
The previous lowest investment was $10,000, removed due to popular demand.
Bitfinex, one of the most active exchanges, removed the minimum $10,000 minimum investment requirement, potentially opening up to a wider user base. The exchange hopes to invite more potential traders interested in digital currencies.
Jean-Louis van der Velde, CEO at Bitfinex, said: “We simply could not ignore the increasing level of requests for access to trade on Bitfinex from a wider cohort than our traditional customer base. For the last six months we have been working hard to ready our platform for a new wave of customer accounts and are now in a position to open Bitfinex to a wider audience. By dropping our minimum equity requirement, the only limits are now set by the traders themselves.”
Bitfinex remains one of the more influential trading platforms, with a prominent connection to the Tether (USDT) stablecoin. However, Bitfinex also offers fiat on-ramps and has unrolled a know-your-customer procedure to offer fully legalized exchange services. Bitfinex has triggered skeptical opinions in the past, with allegations of actively faking Bitcoin (BTC) volumes and pricing.
Currently, Bitfinex has shown a relatively good match between visits and volumes, based on The TIE research. Compared to newer exchanges, most of the Bitfinex volumes have been deemed realistic. Bitfinex has also moved to US dollar trading, and has a separate market for USDT with a floating exchange rate. In the past, the USD/USDT pair on Bitfinex had a fixed price.
But this ratio changed after the Tether company admitted its USDT issuance was not backed by fiat, but by assets including debt.
According to CryptoCompare data, Bitfinex takes up around 10% of BTC trading volumes, with much greater influence in the past. US dollar trading for BTC has fallen to around 11% from previous peaks of 16%, and BTC/USDT trading takes up to 75% of the volumes. Bitfinex is no longer the leading holder of USDT, as most of the stablecoins have flowed into Binance. The Binance wallets now hold more than 800 million USDT, while Bitfinex now holds only 22 million USDT, only receiving small-scale transactions.
In the past, Bitfinex received large-scale tranches of USDT and held above 600 million USDT. But the exchange has revamped itself as a fiat market, as the USDT found their way into other exchanges.