Friday, June 21, 2024

Binance US recently made headlines after announcing the resumption of withdrawals. However, Bitcoin (BTC) has been trading at a significant discount, more than $2,500 below the prevailing market price, since then. This unexpected discount on BTC and other cryptocurrencies paired with USD has sparked speculation regarding the future of Binance US and the safety of users’ funds.

Accurate Valuation Through Stablecoin Pairings

On July 10, the BTC/USD value on Binance US was just above $27,500, significantly lower than the prices on other centralized exchanges. In contrast, when BTC was paired with stablecoins like USDT, its value on Binance’s US affiliate aligned with that on other exchanges, amounting to slightly over $30,100.

Discounted Trading of BTC and ETH on Binance US

Interestingly, data from Binance US reveals that most cryptocurrencies listed on the platform have been trading at a discount when valued in USD. However, when these assets were paired with stablecoins like USDT and USDC, their values appeared to accurately reflect the market. Although news of BTC and other crypto discounts gained traction on Twitter on July 9, recent trading data indicates that these price discrepancies actually started emerging around June 21.

The emergence of discounts on all assets paired with USD seems to contradict the previous situation when the U.S. Securities and Exchange Commission attempted to freeze user assets through a court motion. In early June, Binance US reported a BTC/USD value that was $1,444 higher per bitcoin compared to the average global exchange rate, while Ethereum was trading at a $100 premium.

Possible Underlying Issues Revealed by Arbitrage Opportunities

The discounted prices across all crypto assets paired with USD on Binance US may be a result of challenges faced by the exchange’s banking partners. In a message to users on June 23, Binance US announced that it anticipated the discontinuation of USD withdrawal services by its banking partners. As a solution, the affiliate encouraged users to convert their USD fiat balances into stablecoins to continue engaging in crypto-to-crypto trading on the platform.

The appearance of discounted crypto assets paired with USD on Twitter has triggered speculations about the future of Binance US and the security of users’ funds. However, some users are skeptical about considering these price discrepancies as profitable arbitrage opportunities. For instance, Max, a user on Twitter, expressed doubt that the discounts on Binance US indicated a viable arbitrage opportunity. Another user named James Foura characterized the situation as a one-way trade.

“People keep talking about arbitrage on Binance US… it’s a one-way trip, folks. Getting money back in requires crypto that has to be bought at higher prices elsewhere. So it’s basically a wash unless you want to dump your crypto. Can anyone find parity on Coinbase?” Foura remarked in a tweet.

We welcome your thoughts and opinions on this story. Feel free to share your perspective in the comments section below.

Frequently Asked Questions (FAQs) about BTC discount

What is the reason behind the BTC discount on Binance US?

The BTC discount on Binance US is believed to be linked to challenges faced by the exchange’s banking partners, which has led to price discrepancies for crypto assets paired with USD.

Are other cryptocurrencies also trading at a discount on Binance US?

Yes, according to data, most cryptocurrencies listed on Binance US have been trading at a discount when valued in USD. However, when paired with stablecoins like USDT and USDC, their values appear to align with the market.

Is the BTC discount an arbitrage opportunity?

There is skepticism among users regarding the BTC discount being a profitable arbitrage opportunity. Users argue that it is a one-way trade, as converting back to USD would require buying crypto at higher prices elsewhere.

What steps has Binance US taken to address the situation?

In response to the challenges with banking partners, Binance US encouraged users to convert their USD fiat balances into stablecoins to continue engaging in crypto-to-crypto trading on the platform.

What are users’ concerns regarding the future of Binance US and their funds?

Users have expressed concerns about the future of Binance US and the safety of their funds due to the emergence of the discount and the uncertainty surrounding the exchange’s banking partner situation.

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5 comments

CryptoMaximalist42 July 11, 2023 - 11:46 am

binance us needs to fix their banking partner issues ASAP. this discount on all assets paired with USD is raising red flags. i hope users’ funds are safe. fingers crossed!

Reply
BlockchainLover99 July 11, 2023 - 12:49 pm

dang, this btc discount drama got everyone talking on twitter. but tbh, it seems like a one-way trade. gotta buy crypto at higher prices elsewhere to get your money back. not really worth it, is it?

Reply
CryptoTrader23 July 11, 2023 - 7:15 pm

i’m confused, why is btc cheaper on binance us than other exchanges? stablecoins show the same value tho. something fishy is happening with their USD pairs.

Reply
DigitalNomad007 July 11, 2023 - 9:25 pm

interesting to see how the btc discount on binance us started a few weeks ago. could it be connected to the SEC stuff from before? things are getting more complicated in the crypto world.

Reply
CryptoEnthusiast17 July 11, 2023 - 10:24 pm

wow, binance us got a btc discount?! that’s crazy. but some users say it’s not a real oppertunity for arbitrage. hmm, what’s going on with their banking partners?

Reply

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