Bitcoin and Ethereum are trading at a handsome discount on Binance.US, but not all users will be able to take advantage of it.
At almost $27,500, Bitcoin is trading around $2,500 less on Binance.US compared to global spot markets. Ethereum, on the other hand, was trading at $1,700, a discount of $200, offering market participants a better price than other crypto exchanges.
discount concerns
Cryptocurrency users took to Twitter to address the situation and called is a cryptocurrency “depeg”, a term denoting a significant divergence from global spot prices.
But it is not easy to take advantage of the disparity, since discounted cryptocurrencies can only be bought through USD holdings. However, Binance.US suspended USD deposits on the platform on June 9. This essentially leaves only those users with USD already sitting on the exchange to take advantage of the arbitrage opportunity.
Another case of price anomaly on a Binance platform was seen in late May when the Australian branch of the cryptocurrency giant witnessed a massive drop in the price of Bitcoin compared to global spot prices.
The event unfolded after the completion of the fiat on-ramps and off-ramps by the company’s third-party payment provider. Subsequently, the price of Bitcoin on the Australian Binance platform plunged 20% against the AUD relative to global prices.
Tether CTO steps in
In addition to Bitcoin and Ethereum, the world’s largest stablecoin USDT was also trading below $1 on the exchange, prompting FUD in the community. In an attempt to ease concerns, Paolo Ardoino, the CTO of the stablecoin issuer, explained that a lack of many market makers willing to arbitrate could be behind the disparity considering that Binance.US is embroiled in legal challenges.
The executive further added that Tether is in charge of its primary market, while arbitrageurs and market-making professionals are responsible for the secondary market-making markets, i.e., crypto exchanges.
“BTC/USD is trading at 27600 there (30.1k on other exchanges). there seems to be a general spread of ~8%. Does it mean that BTC is also worth less globally? Of course not. The same logic applies. do the math on the spread for BTC/USD and USDt/USD and you’ll get pretty much the same percentage.”
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