Bitcoin (BTC) and other digital assets including Tether (USDT) are currently trading at an 8% discount on Binance.US, a situation attributed to liquidity issues on the platform following a lawsuit filed by the United States Securities and Exchange Commission (SEC).
Data from Binance.US shows that BTC is trading at $27,705.59 at the time of writing, around $3,000 less than what it sells for on competing platforms like Coinbase, Kraken, BitStamp and others.
Meanwhile, this discount is also pronounced on other digital assets like Ethereum (ETH), USDT, Solana (SOL) and others, according to Coingecko data.
Issues with Binance in the US
Since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US on June 5, the exchange’s market depth has fallen nearly 80% as market makers exited the market. platform.
Following the legal issues, the exchange halted US dollar deposits after its banking partners abruptly halted their payment channels and switched to a crypto-only platform. Blockchain analysis company Kaiko reported that this issue greatly affected Binance.US’ reputation and its market share fell to less than 1%.
Since then, the exchange has seen high volatility with its USD pairs, with BTC reaching $138,000 on June 21. Prior to this, Bitcoin traded at a 3% discount in May.
Meanwhile, assets associated with stablecoins like USDT and USDC are trading at regular prices, according to data of Coingecko.
Tether CTO discusses USDT trading on Binance.US
Tether CTO Paolo Ardoino address worried that the USDT could deviate from its peg to the dollar. He pointed out that the discrepancy is exclusive to Binance.US, where a general discrepancy of -8% seems to affect all cryptocurrencies on the platform.
According to Ardoino, the situation was caused by the legal challenges that Binance.US is currently facing. He wrote:
“Binance.US is facing legal challenges, so it probably doesn’t have a lot of market makers willing to arbitrate right now. On Binance.com, USDt trades 1 basis point above the dollar.
The Tether CTO added:
“Tether is in charge of its primary market (attach to). Market making secondary markets (crypto exchanges) are the role of arbitrageurs and market making professionals.
Tether post responds to depeg fears as Binance.US faces 8% Bitcoin discount appeared first on CryptoSlate.
