Crypto Exchange ShapeShift Is Moving Away From Its No-Account Model

Crypto exchange ShapeShift is launching a membership program for its users. While voluntary at first, it will soon become a mandatory feature.

AccessTimeIconSep 4, 2018 at 8:10 p.m. UTC
Updated Sep 13, 2021 at 8:20 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrency exchange ShapeShift has launched a new membership program that will eventually become mandatory for its users.

as a loyalty program, the initiative will see the startup offer a range of benefits while also moving to start collecting some personal information from its users, essentially forming a pivot away from its "exchange without accounts" model.

In a blog post, CEO Erik Voorhees wrote that "that last detail sucks" in reference to the plan to make the membership program mandatory, which will take place sometime later this year.

Nothing that "we would prefer if the collection of personal information was not a mandatory element," Voorhees went on to write:

"We still firmly believe that individuals, regardless of their race, religion, or nationality, deserve the right to financial privacy, just as they deserve the right to privacy in their thoughts, in their relationships, and in their communications. Such privacy is a foundational element of a civil and just society, and should be defended by all good people. We remain committed to that cause and it is best served if we are smart about our approach.

Members will receive discounts on exchange rates, volume-based rewards for transacting with the FOX token and higher transaction limits.

The broader changes, according to Voorhees, are a result of requests from ShapeShift users for account-related features, an "increasing interest in ... tokenization" and the regulatory uncertainty surrounding cryptocurrency exchanges at present, he said.

"Membership is, in essence, an advanced loyalty program. It will lead over time both to better pricing and a superior user experience," he wrote.

While ShapeShift is adding new features for the program, Voorhees stressed, it will remain a non-custodial exchange, meaning it will not hold customer funds.

ShapeShift image via Piotr Swat / Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.