Veteran trader Peter Brandt calls Binance ‘scam of the decade’ as Bitcoin, Ethereum trade at discount
- Veteran forex trader Peter Brandt commented on Bitcoin, Ethereum and altcoin USD pairs trading at a discount on Binance.
- Experts believe the discount is a result of market makers exiting the exchange.
- BNB price sustains above support at $233.
Peter Brandt, a commodity and foreign exchange trader, compared the discount on Bitcoin and Ethereum prices on Binance to the “popping of a bubble.” Brandt criticized Binance and Executive Changpeng Zhao (CZ), labeling the exchange the “scam of the decade.”
Binance’s native token BNB has sustained above key support at $233.
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Peter Brandt comments on discounted Bitcoin and Ethereum USD pairs
On July 9, market participants noticed a widening gap in the USD pairs of crypto on Binance and other cryptocurrency exchanges. This was termed a “depeg” of cryptocurrencies among traders on crypto Twitter.
Bitcoin is trading at a nearly $2,500 discount on Binance US, offering traders a better price than other exchanges. However, most traders are likely to be unable to take advantage of the arbitrage opportunity. Only the USD pairs of cryptocurrencies are trading at a discount.
Binance.US users are unable to deposit USD to the exchange since the deposits have been suspended for nearly a month. Discounted cryptocurrencies can only be purchased via USD holdings already existing in users’ Binance wallets. This means not all traders can engage in the arbitrage opportunity.
Peter Brandt commented on the discounts and called the exchange a “scam” for its thinning liquidity in USD pairs.
The bubble is popping. Amazing that #cryptonerds who verbally debase $USD hold assets via $USDT via @cz_binance scam of the decade pic.twitter.com/z0H6gspLeo
— Peter Brandt (@PeterLBrandt) July 10, 2023
Brandt echoes the concerns of the wider crypto community that US Dollar withdrawals will be suspended on July 20 since The currency is being phased out on the exchange platform.
Experts believe market makers’ exit from the exchange is responsible for the declining spot prices of Bitcoin, Ethereum and altcoins.
Binance US #bitcoin trading at 26k vs 30k (current price)
— Boxmining (@boxmining) July 10, 2023
This is exactly what I WARNED you guys about market makers leaving US...
Full explanation in this video: https://t.co/Jl82aPoA43 pic.twitter.com/oBUs9UO9Iq
BNB sustains above support at $233
Despite the rising speculation in the crypto community, BNB price has sustained above $233. The exchange’s native token is currently trading below its three Exponential Moving Averages – the 10, 50 and 200-day EMAs at $237, $258.20, and $288.40.
BNB/USD one-day price chart on Binance
These three long-term EMAs are likely to act as resistances for BNB in its upward trend. The June 12 low of $220.40 could act as support for the token in the event of a decline.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
