Crypto-exchanges make money by exploiting end user’s ‘lack of knowledge,’ claims Level CEO Chris Slaughter
As cryptocurrency records mass adoption across the world, business entrepreneurs have increased their efforts to impart their knowledge to the general public. One such technologist is Chris Slaughter, CEO of crypto-exchange Level, and who featured in one of Anthony Pompliano’s podcasts to discuss the “holes” within the crypto-ecosystem. Slaughter started off the discussion by expanding on Level’s “flat and transparent fee model” that allows users to enjoy form unrestricted trading for one monthly fee.
On the other hand, stressing upon the fact that capitalist forces will drive down prices as technologies and platforms get commoditized, Slaughter highlighted,
“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.”
The entrepreneur also spoke about Coinbase’s extremely high transaction and processing fees, calling out the notion of “Pro” offerings that further create siloed experiences for new users. He argued that Level’s business model was a sort of “exploitation of information asymmetry.”
Furthermore, Level intends to offer a frictionless experience by merging various financial services such as debit cards that support both Bitcoin, as well as fiat currency. However, he strongly believes that Bitcoin will eventually replace fiat in the not so distant future.