Tether addresses depeg fears as Binance.US faces 8% Bitcoin discount – CryptoSlate

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The global crypto market cap is $1.18 trillion with a 24-hour volume of $32.63 billion. The price of Bitcoin is $30,385.98 and BTC market dominance is 49.9%. The price of Ethereum is $1,869.63 and ETH market dominance is 19.0%. The best performing cryptoasset sector is Media, which gained 50%.
Binance.US has experienced huge price swings with its US dollar pairs since the SEC filed a lawsuit against it.
Cover art/illustration via CryptoSlate
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 U.S. Securities and Exchange Commission (SEC).
Data from Binance.US shows that BTC is trading at $27,705.59 at the time of writing, around $3000 less than it sells on rival 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.
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 by almost 80% as market makers exited the platform.
Following the legal troubles, the exchange discontinued U.S. dollar deposits after its banking partners abruptly halted their payment channels and transitioned to a crypto-only platform. Blockchain analytical firm Kaiko reported that this issue greatly affected Binance.US’ reputation, and its market share fell to less than 1%.
Since then, the exchange has experienced high volatility with its USD pairs, with BTC spiking to as high as $138,000 on June 21. Before that, Bitcoin had traded at a 3% discount in May.
Meanwhile, assets paired with stablecoins like USDT and USDC are trading at regular prices, according to data from Coingecko.
Tether CTO Paolo Ardoino addressed concerns that USDT had deviated from its dollar peg. He highlighted that the deviation is exclusive to Binance.US, where a general -8% spread appears to affect all cryptocurrencies on the platform.
According to Ardoino, the situation was caused by the legal challenges Binance.US was currently facing. He wrote:
“Binance.US is going through some legal challenges so it probably doesn’t have many market makers willing to arbitrage at this moment in time. On Binance.com USDt is trading 1bps above the dollar.”
The Tether CTO further added:
Tether is in charge of its primary market (tether.to). Market making secondary markets (crypto exchanges) is the role of arbitrageurs and market makering professionals.”
Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.
Binance.US will provide secure and reliable cryptocurrency trading to users in the United States.
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
Binance.US has experienced huge price swings with its US dollar pairs since the SEC filed a lawsuit against it.
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