Peter Brandt, a commodities and currency trader, compared the reduction in Bitcoin and Ethereum prices on Binance to “the bursting of a bubble.” Brandt criticized Binance and Executive Changpeng Zhao (CZ), calling the exchange the “scam of the decade”. Because on July 9, market participants noticed a widening gap in USD crypto pairs on Binance and other cryptocurrency exchanges.
Bitcoin analyst criticizes Binance
The huge differences in crypto spot prices on Binance US and other exchanges over the past few days have undeniably created a huge arbitrage opportunity for registered customers. Earlier on Monday, Bitcoin and Ethereum prices on Binance US were trading around $27.6k and $1,706, respectively. For comparison purposes, the same assets were traded on other exchanges for around $30.1k and $1,858, respectively, according to market data provided by TradingView.
Bitcoin is trading on Binance US at a discount of around $2,500, offering investors a better price than other exchanges. However, it is likely that most traders will not be able to take advantage of the arbitrage opportunity. Only USD cryptocurrency pairs are traded at a discount. Binance.US users cannot deposit USD on the exchange as their deposits have been suspended for about a month. Discounted cryptocurrencies can only be purchased via USD holdings already in users’ Binance wallets. This means that not all investors can take advantage of the arbitrage opportunity.
Peter Brandt commented on the discounts and called the exchange a “scam” as it reduced liquidity in USD pairs. Brandt echoes the concerns of the wider crypto community that US Dollar withdrawals will be suspended on July 20 since the currency was phased out on the exchange platform. Experts believe that the exit of market makers is responsible for the drop in spot prices of Bitcoin, Ethereum and altcoins.
USDT pair also experienced “depeg”
The Tether USDT and USD derivative pair also fell as low as 88 cents on Sunday. cryptocoin.com As we reported, Binance traded at a discount on US. However, the difference in prices may be a tech bug. Because when clicking on individual assets, the same values appear as other exchanges. According to veteran Wall Street trader Peter Brandt, Binance US and CEO Changpeng Zhao should be seen as the swindler of the decade. While Brandt suggested that the crypto bubble is bursting, he blamed crypto enthusiasts who were constantly dropping the US dollar while still holding Tether USDT on Binance US.
In the past, Brandt has published several Bitcoin analyzes but has remained somewhat neutral on exchanges. However, the analyst focused on warning his millions of followers of scams that should be avoided. In his defense, Binance’s CZ stated that more FUD will continue to fly around but will not prevent the team from building on the cryptocurrency market.
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