Binance Announces Compensation For Traders Who Bought AEUR Stablecoin During 200% Surge

Last updated: December 13, 2023 05:41 EST
. 1 min read

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In a blog post published Wednesday, the company said it would create a compensation plan for users who bought the stablecoin after its value surged nearly 200% to more than $3. — Source: Pixabay

Binance will compensate users who bought the Euro-pegged AEUR stablecoin during a recent 200% surge, the company said.

In a blog post published Wednesday, the company said it would create a compensation plan for users who bought the stablecoin after its value surged nearly 200% to more than $3. The sudden spike in price was attributed to a misunderstanding among certain Binance traders who failed to recognize the stablecoin nature of AEUR.

The newly launched AEUR stablecoin, issued by Swiss-based Anchored Coins, experienced a 200% surge in price shortly after its listing on the spot market on Tuesday. The AEUR-USDT trading pair reached a peak of $3.25, far surpassing its expected value of approximately $1.07.

In response to the sudden surge, the exchange swiftly halted trading for four of the asset’s trading pairs, including AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR. The decision was attributed to the abnormal volatility observed in the stablecoin’s price.

“As AEUR has been well received by the community, including users who might not have realized its standing as a stablecoin, there was a strong demand for AEUR, which resulted in its price deviation,” Binance wrote.

The exchange added that eligible traders for this compensation will be those who purchased AEUR between 17:41 UTC and 18:31 UTC on Dec. 5 and were unable to sell them.

“Eligible users’ net AEUR purchase amount during the Compensation Period will count toward the calculation of their respective compensation,” the company noted. “The calculation will be based on the price of AEUR on Binance Spot at 17:41 UTC (i.e., 1.07999 USDT per AEUR).”

The company announced that eligible users impacted by the trading suspension would receive compensation in the form of USDT token vouchers by December 9. These vouchers will be valid for 30 days from the date of distribution.

AEUR originally had a supply of five million coins on Binance, with the exchange also initially incentivized trading of the new stablecoin with a zero-fee promotion.

AEUR’s issuer, Anchored Coins, cautioned the community to exercise caution regarding potential scammers. In a LinkedIn post on December 5, Anchored Coins revealed that they had received reports of fraudulent social media accounts posing as them.

The impostors requested users to disclose their personal wallet addresses. The company emphasized that it never makes such requests and urged users to be vigilant against such scams.