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Sparknotes :

Charging 1% fee to buy #Bitcoin isn’t a successful business model.

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But having a 1% spread to mask the fee people seem to be better with.

Probably but even then that will fail as a business model.

What do you suggest to be an alternative model?

I’d tell you but I don’t give out alpha like that for free

If you don't pay for a product then you are the product. It isn't free to run a Bitcoin exchange.

Is that what swan was doing?

0% fee but 1% spread for success