Nonsense. It's the same reason why Binance charges like $30 to withdraw in bitcoin. That gives you an incentive to trade in to a shitcoin. Binance gets the trading fees. You pay three times -- trades BTC for shitcoin (e.g., LTC) on Binance, then pay a (small) fee to withdraw the LTC (e.g., to Kraken), then let's say you then convert LTC to USD there (third fee you pay), and then withdraw the USD.
Nonsense. It's the same reason why Binance charges like $30 to withdraw in bitcoin. That gives you an incentive to trade in to a shitcoin. Binance gets the trading fees. You pay three times -- trades BTC for shitcoin (e.g., LTC) on Binance, then pay a (small) fee to withdraw the LTC (e.g., to Kraken), then let's say you then convert LTC to USD there (third fee you pay), and then withdraw the USD.