Binance has announced that it will compensate traders who purchased the euro-pegged stablecoin AEUR during a recent price surge to over 200% of its typical $1 value. In a blog post, Binance said it would create a plan to reimburse users who bought AEUR between 5:41 pm and 6:31 pm UTC on December 5th, when its price spiked to over $3.
The abnormal price increase was attributed to some traders on Binance not realizing AEUR was supposed to be a stablecoin pegged to the euro. Shortly after AEUR’s listing on Tuesday, multiple trading pairs including AEUR/USDT reached well beyond the expected $1.07 price.
In response, Binance halted trading on four AEUR pairs due to the extreme volatility. They stated the strong demand and misunderstanding around AEUR’s nature as a stablecoin caused the price deviation.
Eligible traders for compensation are those who bought AEUR during the spike and were unable to sell. Compensation will be calculated based on the $1.07999 price at 5:41 pm UTC on December 5th. Impacted users will receive USDT vouchers by December 9th, valid for 30 days.
AEUR is issued by Anchored Coins and originally had a 5 million coin supply on Binance, with incentivized zero-fee trading. Separately, Anchored Coins warned about fraudulent social media accounts requesting users’ wallet addresses while posing as the company.
#Binance #Crypto #Stablecoin #AEUR
