• Binance introduced a new Self-Trade Prevention (STP) function to prevent self-trading activities on the platform
• The function will be available on the API for spot trading and aims to prevent the execution of orders that could result in self-trade
• The launch of this new tool comes as Binance is fighting off FUD from competitors
Cryptocurrency exchange giant Binance has unveiled a new feature that could potentially prevent self-trading activities on the platform. The new function, known as Self-Trade Prevention (STP), will be available on the API for spot trading from Jan. 26 and aims to prevent the execution of orders which could result in self-trade.
Self-trading occurs when the same users are on both sides of a trade, which indicates that there is no change in the ownership of the traded asset. Such activity creates the impression of trading activity and is a form of market manipulation. However, Binance noted that there were some unintentional self-trading activities. According to the blog post, professional traders who carry out multiple strategies simultaneously could accidentally match two orders from the same trading desk. While the platform acknowledges such errors, the exchange giant stressed that the company’s terms of use prohibit intentional self-trades.
The STP introduction helps users save fees on unnecessary trades and curb inadvertent self-trading transactions. The new feature will be available for API users and is unavailable for customers who trade on the Binance website, desktop, or mobile apps.
The launch of Binance’s new tool comes as the crypto exchange is fighting off FUD from competitors. According to a recent report by crypto.news, the company’s CEO Changpeng Zhao claimed that bankrupt rival FTX paid over $43 million to a cryptocurrency researcher to create the false impression that Binance was under investigation.
The introduction of the STP feature is a positive step for Binance in protecting its users from self-trading and creating a safe trading environment for all. The exchange giant also plans to launch more features and services in the near future to further enhance the user experience.
