British Virgin Islands-based cryptocurrency exchange Bitfinex announced to eliminate the fees on deposits below $1000 entirely. Earlier this year, Bitfinex announced the removal of the USD 10,000 minimum equity threshold.
The fee for small deposits was put in place to prevent spam attacks.
Bitfinex revealed in its announcement that the fee on small deposits was put in place in December 2017 to prevent spam attacks. The announcement read, “Numerous small deposits created an excess of tiny wallet inputs that required wallet input consolidation maintenance.” The small deposit fee helped to keep withdrawals flowing smoothly for all the customers. The exchange informed that since then, they have developed capabilities to thwart these deposit-related spam attacks, the small deposit fee is now not required.
We have removed the small deposit fee!
Bitfinex’s users can now enjoy fee-free crypto deposits also for amounts less than 1,000 USD equivalent.
Discover more about the journey of the small deposit fee and the reasons why we decided to remove it: https://t.co/6HB4FcMziC pic.twitter.com/EMjATqEIVh
— Bitfinex (@bitfinex) December 18, 2019
Bitfinex now supports deposits and withdrawals on the Lightning Network.
Earlier this month, Bitfinex announced to support deposits and withdrawals on the lightning network. It became one of the first major exchanges to do so. But the exchange is facing many legal troubles as a new class-action lawsuit was filed by Eric Young and Adam Kurtz at the district court in the Western District of Washington last month. The plaintiffs accused Bitfinex and Tether of manipulating the market for their own benefits. The exchange has denied all such claims.