Unusual cost inconsistencies at Binance United States: cryptocurrencies, including Tether, traded at affordable prices

Unusual cost inconsistencies at Binance United States: cryptocurrencies, including Tether, traded at affordable prices

unusual cost inconsistencies at Binance United States

Binance United States, the American branch of the world's largest crypto trade company, is currently experiencing unusual cost inconsistencies. Cryptocurrencies such as Bitcoin, ether and even the stablecoin tether are traded at discounted prices that are up to $ 3,000 below the international location price.

Since July 27, the prices for Bitcoin and Ether on Binance United States have been significantly below international prices. Bitcoin is currently trading around 30,106% cheaper, while Ether is about $ 200 cheaper than on other platforms. Even the stable coin Tether, which is usually secured $ 1: 1, is currently being traded at only around $ 0.915.

These unusual price differences seem to be due to operational restrictions at Binance United States. Since June 9, the platform no longer accepts new USD deposits, so that customers can only acquire cryptocurrencies with existing credit in their accounts. This has caused some customers to liquidate their assets below the market price.

Although the price of Tether on Binance United States has dropped, this does not indicate a depeging problem of the stable coin. Market actors suspect that legal uncertainty in connection with Binance United States means that arbitrary options are prevented. This is an investment strategy in which minimal cost differences between different markets are used to make profits.

Tether’s Chief Technology Officer, Paolo Ardoinino, said on Twitter why the price of Tether on Binance United States is lower and emphasized that this is not due to a loss of binding the stable coin. The price reduction on Binance United States is due to how the market is operated, while other markets such as crypto exchanges are the territory of arbitrage and market specialists.

It is important to note that the lower prices for Bitcoin and Ether on Binance United States do not indicate a global decline in these assets. Rather, it is a specific problem in connection with the trade on this platform.

In the United States, similar problems have arisen on other platforms, which indicates that the problem has expanded to the exchange mechanism and is not limited to individual cryptocurrencies.

It remains to be seen how Binance United States will react to these challenges and whether the cost inconsistencies can be remedied. In the meantime, crypto retailers and investors should observe the price differences carefully and use possible arbitrary opportunities to make profits.