Binance to Delist AEUR Stablecoin After Unexpected Surge, Promises Reimbursement
Summary:
Binance is set to delist the AEUR stablecoin, issued by Swiss fintech firm Anchored Coins, after a surge of over 200% in value provoked a trading halt. Binance plans to reimburse users who bought the token at the high valuation and couldn't manage to sell it following the disruption. The considerable price swing affected the pricing of several trading pairs of AEUR, including Bitcoin, Ether, and the euro, which are also included in the exchange's compensation scheme. Trading of AEUR is currently suspended on the Binance platform.
The prominent crypto platform, Binance, has announced that it plans to delist the Anchored Coins Euro (AEUR) stablecoin and compensate users who bought the token at an escalated price. After the token was listed, it saw a 200% rise in value, which led Binance to halt trading. In a statement on December 6th, Binance made it clear they would refund affected users who didn't manage to offload the inflated AEUR. The refund will consist of a part of the premium price that escalated above the peg of 1 AEUR being equal to 1.08 Tether (USDT).
Binance noted that after AEUR was made available, it attracted investor attention yet some didn’t understand its nature as a stablecoin, which led to a sudden increase in demand, subsequently causing price discontinuities.
This considerable price fluctuation also interfered with the pricing of various AEUR trading partners including Bitcoin, Ether, and the euro, which are also included in Binance's reimbursement plan. According to Binance, resumption of these respective AEUR spot trading pairs will be announced in due course to prevent probable losses to investors. As of now, trading of the coin on the exchange is on hold.
AEUR is produced by Anchored Coins, a Swiss-based fintech company, which is a part of the local self-regulatory body, Verein zur Qualitätssicherung von Finanzdienstleistungen (VQF). This organization is supported by Swiss Financial Market Supervisory Authority (FINMA) and mandates the company to adhere to Anti-Money Laundering regulations. Anchored Coins asserts that each AEUR is backed 1:1 by reserves held exclusively with Swiss FINMA-approved banks. The company's stablecoins are presently minted on Ethereum and BNB Smart Chain. The AEUR stablecoin trading was briefly paused on Binance.
Published At
12/6/2023 7:27:04 PM
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