Crypto exchange Binance is reimbursing users and delisting the Anchored Coins Euro stablecoin (AEUR) after the token surged more than 200% in value after listing.
According to the Dec. 6 announcement, Binance will compensate users who purchased AEUR at an inflated valuation and failed to sell it after trading was halted earlier in the day. Affected users will receive a portion of the premium amount above the peg of 1 AEUR = 1.08 Tether (USDT) as a refund. The exchange wrote:
“After AEUR went online, it attracted the attention of community users. However, some users did not realize that AEUR was a stable currency when they purchased it. Demand surged in the short term, resulting in price deviations.”
The large price volatility also affected the pricing of various AEUR trading pairs, including Bitcoin (BTC), Ether (ETH) and the euro, which also falls within the scope of the exchange’s compensation plan. “To avoid potential losses for other investors, the resumption time of the above AEUR spot trading pairs will be notified separately,” Binance said. The coin is currently suspended for trading on the exchange.
AEUR is issued by Anchored Coins, a fintech firm based in Zug, Switzerland. It is part of the country’s self-regulatory organization Qualitätssicherung von Finanzdienstleistungen (VQF), which is endorsed by the Swiss Financial Market Supervisory Authority (FINMA), requiring the firm to comply with Anti-Money Laundering obligations.
Anchored Coins claims that each AEUR is “backed 1:1 with the reserves held exclusively with Swiss FINMA-licensed banks.” The firm’s stablecoins are currently minted on Ethereum and BNB Chain.
The AEUR stablecoin on Binance shortly before trading suspension
Related: Circle launches native euro stablecoin on Stellar
Source: https://cointelegraph.com/news/euro-stablecoin-suspended-binance-200-percent-surge-price
