On December 4, 2023, the Binance crypto exchange listed a new stablecoin in euros, Anchored Coins EUR (AEUR). The next day after the start of trading, the asset lost its connection to fiat currency and grew by almost 200%.
EUR 1.08 OLMASI GEREKİRKEN AEUR DENİLEN COİN 2.88$ OLDU BİNANCEDE !! pic.twitter.com/MC0E6Veq8P
— Beyaz Kripto (@BeyazKripto) December 5, 2023
For most of the day, AEUR/USDT traded around $1.08, roughly in line with the EUR/USD exchange rate. On December 5, around 17:45 UTC, the asset began to grow sharply. At the moment, the price of the stablecoin reached $3.25.
#Binance has suspended trading of $AEUR due to abnormal volatility.
Thanks for your patience and our team is working towards reopening trading soon.https://t.co/F80OVDG1qk
— Binance (@binance) December 5, 2023
Binance suspended AEUR trading due to “abnormal volatility.” The last trade on the platform was executed at 18:31 UTC at a price of approximately $2.89.
According to press release, a stablecoin issued by the Swiss company Anchored Coins, which is owned by Singaporean investor and former Member of Parliament Calvin Cheng. It is assumed that the cost is AEUR will be provided paper assets in euros, and its market capitalization will be $5 million.
Binance did not name the reason for the sharp jump in the value of the stablecoin. It is known that small capitalization and limited liquidity make an asset more vulnerable to price manipulation.
IN report Moody’s Analytics said that in 2023, stablecoins lost their peg to fiat currencies more than 600 times.
Source: Cryptocurrency
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