The world’s largest crypto exchange Binance will compensate users who were adversely affected by the unexpected price increase of the stablecoin Anchored Coins Euro (AEUR). The value of the token increased massively by over 200% after listing on Binance. The exchange wrote this in a statement.
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Stable Crypto Sees 200% Price Explosion
AEUR is a stablecoin, meaning that the value of the cryptocurrency must remain stable compared to the euro. So it always has to be worth 1 euro.
However, after listing on Binance, the cryptocurrency witnessed a bizarre price movement. Instead of maintaining a stable value, there was a gigantic price explosion.
According to Binance, many investors were not immediately aware that AEUR was a stablecoin. Due to increased demand, the stablecoin still rose by 200%, which was not intended. This caused a number of investors who did not know that it was a stablecoin to make a mistake.
After the huge price explosion, they actually thought AEUR was an interesting investment. After buying at a high price, they could only sell their stablecoin at a loss.
The Binance crypto exchange helps victims
In response to the situation, Binance will compensate users who purchased AEUR at an inflated price. The compensation includes a portion of the premium paid in addition to the fixed price of 1 AEUR = 1.08 Tether (USDT). This decision is part of Binance’s efforts to minimize the impact on customers.
Binance has also temporarily suspended trading in AEUR. The exchange plans to resume trading in the stablecoin at some point.
AEUR is issued by Anchored Coins, a fintech company based in Zug, Switzerland. Anchored Coins ensures that each AEUR token is fully backed by reserves at FINMA-licensed Swiss banks. The company’s stablecoins are currently issued on both the Ethereum and BNB smart chain platforms, contributing to their stability and reliability.
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