Binance guarantees compensation for losses to users due to the rise of AEUR

Binance guarantees compensation for losses to users due to the rise of AEUR

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by Max Nevskyi

3 years ago

On the largest cryptocurrency exchange Binance, a stablecoin has increased its value by 200% and reached $3.25, losing its peg to the euro. Representatives of the crypto platform noticed this rise and temporarily suspended trading for AEUR.

The price difference was explained by the fact that some traders on Binance were unaware that AEUR is a stablecoin, not a regular cryptocurrency. This led to active buying of the asset due to its relatively low price.

Immediately after detecting the abnormal value of the stablecoin, representatives of the cryptocurrency exchange suspended all spot trading pairs, including AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR.

The day after the incident, the crypto platform announced a compensation plan for affected users. Traders who purchased AEUR at a price exceeding its assumed value will be eligible for compensation.

The compensation process will start within the next three days. The total amount to be distributed among the exchange's clients remains unknown.

AEUR is a stablecoin from Anchored Coins, owned by Singaporean investor Kelvin Cheng. This asset is backed by the euro at a 1:1 ratio and has a market capitalization of €5 million, as stated on the project's website. It was launched in August of this year on the Ethereum and BNB Chain blockchains.

Binance added this stablecoin to its listing on the eve of the incident, which occurred on December 4th. At the time of writing, AEUR trading remains unavailable, but the exchange promises to resume it in the future.

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