Crypto exchange Binance has decided to reimburse users and delist the Anchored Coins Euro stablecoin (AEUR) after its value surged by over 200% following its listing. Binance will compensate users who bought AEUR at an inflated valuation and were unable to sell it after trading was halted. Affected users will receive a refund for the premium amount above the peg of 1 AEUR = 1.08 Tether USDT ($1.00).
The surge in demand for AEUR led to price deviations and significant price volatility, affecting the pricing of various AEUR trading pairs, including Bitcoin, Ether, and the euro. To prevent potential losses for other investors, Binance has suspended trading of AEUR and will notify users separately about the resumption of trading.
AEUR is issued by Anchored Coins, a fintech firm based in Zug, Switzerland. It is part of Switzerland’s self-regulatory organization, Qualitätssicherung von Finanzdienstleistungen (VQF), which is endorsed by the Swiss Financial Market Supervisory Authority (FINMA). Anchored Coins claims that each AEUR is backed 1:1 with reserves held exclusively with Swiss FINMA-licensed banks. The stablecoins are currently minted on Ethereum and BNB Chain.
This incident highlights the risks associated with price volatility in the cryptocurrency market and the importance of understanding the nature of stablecoins before investing. Binance’s decision to reimburse affected users demonstrates its commitment to protecting investors and maintaining a fair trading environment.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇭 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Swiss Financial Market Supervisory Authority (FINMA), Qualitätssicherung von Finanzdienstleistungen (VQF), Anchored Coins, Binance, Ethereum |
| Currencies | BNB, Euro, Ethereum, Tether, Bitcoin |
| Securities | None |
