On December 5, the Anchored Coins Euro (AEUR) stablecoin rate unexpectedly began to rise. Traders thought that this was not a stable coin, but a regular token.
Cumulatively, the price of the stablecoin increased by 200% and reached $3.25 on the largest cryptocurrency exchange Binance. The asset has lost its peg to the euro. Representatives of the crypto platform turned They paid attention to this and soon stopped trading in AEUR.
What happened to AEUR
This huge deviation from the usual value was explained by the fact that some traders on Binance did not understand that AEUR is a stablecoin and not a regular coin. As a result, they began to actively buy the asset, because its price was relatively low.
Immediately after representatives of the crypto exchange noticed the abnormal value of the stablecoin, they stopped all spot trading in pairs with AEUR. This affected AEUR/USDT, BTC/AEUR, ETH/AEUR and EUR/AEUR.
Binance will return all lost funds
The day after the incident, the crypto platform said it had developed a compensation plan for affected users. Traders who purchased AEUR above its estimated value will be eligible for a payout.
The process will begin over the next three days. The total amount distributed among the exchange’s clients remains unknown.
AEUR is a stablecoin from Anchored Coins, which is owned by Singaporean investor Kelvin Cheng. The asset is backed by euros in a 1:1 ratio with a market capitalization of €5 million, it says website project. It was launched in August of this year on Ethereum and BNB Chain.
Binance listed the stablecoin on the eve of the incident, on December 4th.
Source: Cryptocurrency
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