Kryptocurrencies are gaining popularity once again, with Bitcoin reaching new highs and other digital assets like Ether following suit. In Switzerland, two crypto specialists are racing against investment giants to launch the first Bitcoin spot ETF in the US. Even Swiss cantonal banks are introducing crypto services for their customers.
After the crypto winter caused by the collapse of the FTX crypto exchange about a year ago, the introduction of new cryptocurrencies is once again being warmly welcomed. However, sometimes new tokens are received too well by the community. This was the case with the “Swiss” stablecoin AEUR, issued by Zug-based crypto company Anchored Coins. Shortly after its listing on the spot market, AEUR experienced a price increase of around 200%. Stablecoins are cryptocurrencies that are pegged to assets such as the dollar, euro, or gold.
Many traders apparently did not realize that AEUR was a stablecoin, which contributed to the extreme price fluctuations. In response to the sudden price increase, the world’s largest crypto exchange, Binance, announced that it would create a compensation plan for users who bought the stablecoin when its value exceeded $3. Users who purchased AEUR between 17:41 UTC and 18:31 UTC on December 5 and were unable to sell it are eligible for compensation.
The sudden price increase was attributed to a misunderstanding among some Binance traders who did not recognize the stablecoin nature of AEUR. As a result, the exchange immediately halted trading in four of the asset’s trading pairs, citing the abnormal volatility of the stablecoin price.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇠🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Anchored Coins, Blackrock, Binance, FTX, Invesco |
| Currencies | Bitcoin, US Dollar, Gold, Euro, Lido Staked Ether |
| Securities | None |
