Nonsense. It's for the same reason that explains why Binance charges like $30 to withdraw in bitcoin. That gives you an incentive to trade into a shitcoin. Binance gets the BTC/LTC trading fees and liquidity for LTC sellers.
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 for the same reason that explains why Binance charges like $30 to withdraw in bitcoin. That gives you an incentive to trade into a shitcoin. Binance gets the BTC/LTC trading fees and liquidity for LTC sellers.
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.