Other digital assets including Bitcoin (BTC) and Tether (USDT) are currently trading at an 8% discount on Binance.US. This situation is likely due to liquidity issues on the platform due to lawsuits filed by the US Securities and Exchange Commission (SEC). ).
data According to Binance.US, BTC is trading at $27,705.59 at the time of this writing, about $3,000 below what is being sold on competing platforms like Coinbase, Kraken, and BitStamp.
Meanwhile, according to Coingecko, the discount is also noticeable in other digital assets such as Ethereum (ETH), USDT and Solana (SOL). data.
binance usa problem
Since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US on June 5, the exchange’s market depth has dropped by almost 80% as market makers withdrew from the platform.
The exchange suspended US dollar deposits after its partner banks abruptly shut down payment channels and moved to crypto-only platforms following legal troubles. Blockchain analytics firm Kaiko reported that the issue had a huge impact on the reputation of Binance.US, dropping its market share to less than 1%.
Since then, the exchange has seen high volatility in the USD pair, with Bitcoin surged to $138,000 on June 21. Prior to that, in May, Bitcoin was trading at a 3% discount.
On the other hand, assets paired with stablecoins such as USDT and USDC are trading at regular prices. data From Coin Gecko.
Tether CTO Working on USDT Trading on Binance.US
Tether CTO Paolo Ardoino dealt with Concerns that USDT is deviating from the dollar peg. He stressed that the deviation was limited to Binance.US, and the typical -8% spread seems to affect all cryptocurrencies on the platform.
Ardoino said the situation was caused by the legal challenges Binance.US is currently facing. he wrote:
“Binance.US is facing some legal issues, so probably not many market makers are doing arbitrage trading at the moment. USDt is trading 1bps above the dollar on Binance.com .”
Tether CTO added further:
Tether’s post, which first appeared on CryptoSlate, addresses Depeg’s concerns as Binance.US faces an 8% Bitcoin discount.