Transaction costs in Xapo
Last week the bitcoin company Xapo ended with one of its best strategies: the free transaction costs. The firm has announced they will no longer pay mining fees for customer transactions and will forward the cost to users. They have sent the next email to all Xapo Users:
We have an important announcement about your Xapoaccount that will affect you - so please read!
In the next couple of days, all Xapo users will begin to pay the miners fee themselves in order to send transactions out of Xapo.
No portion of this fee goes to Xapo, it is simply the fee that needs to be paid to miners in order for an outgoing transaction to be processed via the bitcoin network! This fee will be dynamically calculated based on the current network conditions and will be paid by you at the time of the transaction.
Due to the increase in transaction volume of the bitcoin network, we'd like to give our users some control over their transactions. That being said, Xapo will give you the ability to select which type of fee you'd like to pay - a standard or high priority fee - thus allowing you to choose how quickly you'd like for your transaction to be processed!
Thanks for your understanding,
P.S. this is a no-reply email, but if need be, you can contact us!
This measure arrives after 2 stressful weeks of backlog with 150,000 to 200,000 unconfirmed transactions filled the network transaction queue (mempool).
Nowadays, these transaction fees are very high, so Xapo can't take charge of them. Moreover, there are many users abusing the free system in order to generate spamming transactions. This can not be accepted, therefore Xapo is following the same way as other bitcoin startups such as Coinbase and Bitpay who have also ceased paying user’s transaction fees.
“In the next couple of days all Xapo users will begin to pay the miners fees themselves in order to send transactions out of Xapo. Due to the increase in transaction volume of the bitcoin network, we’d like to give our users some control over their transactions. That being said, Xapo will give you the ability to select which type of fee you’d like to pay" explains the Palo Alto, California-based startup.
HabWin gives you a $10 discount with your Xapo card
If you also want to have a BitCoin wallet, in Habwin we offer you the opportunity to get your card half the price. Instead of costing you $20 you can have it for only $10. Just enter the code 'JMCP7809' when you create your Bitcoin debit card in Xapo.