Non-custodial cryptocurrency trading platform, ShapeShift made this announcement via an official post on 4th September. The CEO at ShapeShift, Erik Voorhees specifies that his platform will have to start gathering users’ basic personal information. However, he also explains about the five membership levels within the program.
ShapeShift Membership Program
The founder and CEO at ShapeShift, Erik Voorhees took the initiative on Tuesday to launch the ShapeShift Membership saying, ShapeShift Membership is deriving as a loyalty program, and its benefits depend on the membership level that may involve
- Raising trading limits
- Rewards on trading volume
- Better pricing
- Private market with trading data
- Early access to new coins, products & services
However, Erik Voorhees also elaborates,
Today, membership is optional, but it will become mandatory soon…Membership requires basic personal information to be collected.
According to the official website post, ShapeShift emphasizes the user personal information. He says without user details it might be difficult to offer higher order limits and serve as multiple jurisdictions.
This change will also influence the wallet service integration. Responding to the user query on Twitter, ShapeShift explains that,
If ShapeShift membership will soon become mandatory, how does this affect in-wallet exchanges such as Jaxx and Exodus?
If you are using a wallet that integrates with ShapeShift, you will need to authenticate once through the wallet to enjoy the benefits of your membership and to then use the http://shapeshift.io service.
Five Levels of Membership and FOX Tokens
Erik Voorhees describes the five levels of membership:
Level 1 is currently available for free and open to everyone. Its transaction limit is $10,000 with a $50,000 monthly cap volume.
Levels 2-5 will be made available later, and enable the user to enjoy the benefits on higher amounts of volume.
ShapeShift website clarifies that these levels are entirely optional and needs FOX tokens, which are standard working Ethereum. However, these will hold a number of features with functionality after they become available.
However, at the moment, these benefits include:
- Discounts on several exchange rates (Level 2+)
- Volume depending rewards on FOX (ShapeShift ERC20 Token)
- Higher transaction limits
The Reasons behind ShapeShift Exchange Decision
Eric Voorhees details the three driving forces for his shuffling of the platform from the exchange without accounts to an account working model.
- He states that various users put the request on account relating features including transaction history, email notification, whitelisting addresses, etc.
- Voorhees also wrote that growing interest in the broad tokenization phenomenon, the ability to financing and grabbing liquidity in multiple aspects of business and customer relationships.
- He emphasizes on the requirement to be prudent and thoughtful incorporating the approach by navigating the regulatory environment. He also notes about the practices on the need of customers to hand over personal private details is one they have been struggling since inception.
However, following the Eric Voorhees announcement, various industry participants quoted on Twitter about the change. However, Peter Todd, the Bitcoin Core developer was amongst the commenter. He quickly said that “ShapeShift bites the dust.”
RIP Shapeshift. You will not be missed. https://t.co/Jwx8fyx3P8
— WhalePanda (@WhalePanda) September 4, 2018