Search Box

Discounted Crypto Trading and Concerns Over Binance.US Future Amidst Market Uncertainty

 Discounted Crypto Trading and Concerns Over Binance.US Future Amidst Market Uncertainty

Discounted Crypto Trading and Concerns Over Binance
Discounted Crypto Trading and Concerns Over Binance(Images-Getty)

Cryptocurrencies listed on Binance.US, the United States-based crypto exchange operated by Binance, are currently being traded at discounted prices, a phenomenon known in the crypto community as a "crypto depeg." Notably, two of the leading cryptocurrencies, Bitcoin and Ethereum, are being traded at $27,500 and $1,700, respectively, representing a discount of $3,000 and $200 when compared to the global spot prices.

Meanwhile, Tether (USDT), a stablecoin pegged to the US dollar, remains depegged at $0.91 due to the ongoing lawsuit by the US Securities and Exchange Commission (SEC) and the suspension of USD deposits and withdrawals on Binance.US. Additionally, various other alternative cryptocurrencies are also available at discounted rates on the exchange.

As a result of these discounted prices, BTC and ETH experienced a 2% price surge on Binance.US as traders sought to capitalize on the arbitrage opportunity. Arbitrage involves purchasing cryptocurrencies at lower prices on one exchange and selling them at higher prices on another. However, this opportunity is limited to individuals who have USD deposits on Binance.US since deposits have been suspended for almost a month.

Concerns have been raised within the crypto community regarding the future of Binance.US, particularly as several executives have been leaving the exchange. Notably, veteran trader Peter Brandt criticized Binance CEO, Changpeng Zhao (CZ), for the depegging of USDT on Binance.US, referring to it as the "scam of the decade." Brandt also highlighted a past incident where Binance.US approved BTC sell orders at $8,000 despite the cryptocurrency trading at $60,000 on other exchanges. He urged the community to question CZ regarding these issues.

Similarly, Adam Cochran cautioned against trading on Binance.US and criticized CZ for the market uncertainty surrounding the exchange, especially in light of the impending action by the US Department of Justice (DOJ) against Binance.

Furthermore, the crypto market as a whole is currently experiencing liquidity challenges, with investors opting to hold and balance their assets rather than actively trade. In response, global exchanges like Binance and Coinbase are implementing various strategies and promotions to enhance liquidity within the market. It is worth noting that the deadline for USD withdrawals on Binance.US is set for July 20, 2023.

Next Post Previous Post
No Comment
Add Comment
comment url