Binance, one of the leading cryptocurrency exchanges, has announced that it will compensate users who purchased the Euro-pegged AEUR stablecoin during a recent surge in its value. The company made this announcement in a blog post published on Wednesday.
The Surge in AEUR Value
The value of AEUR stablecoin experienced an unexpected surge of nearly 200%, reaching over $3. This sudden price increase was attributed to a misunderstanding among certain Binance traders who failed to recognize the stablecoin nature of AEUR. AEUR stablecoin, launched by Swiss-based Anchored Coins, saw its price skyrocket shortly after being listed on the spot market.
The AEUR-USDT trading pair reached a peak of $3.25, surpassing its expected value of approximately $1.07. However, the abnormal volatility observed in the stablecoin’s price prompted Binance to take swift action.
Binance Compensation Plan
In response to the surge in AEUR price and to address the concerns of affected users, Binance has announced a compensation plan. The exchange temporarily halted trading for four trading pairs, including AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR. It was determined that eligible traders for compensation would be those who purchased AEUR between 17:41 UTC and 18:31 UTC on December 5 and were unable to sell them.
Binance outlined the calculation process for compensation, stating, “Eligible users’ net AEUR purchase amount during the Compensation Period will count toward the calculation of their respective compensation. The calculation will be based on the price of AEUR on Binance Spot at 17:41 UTC (i.e., 1.07999 USDT per AEUR).” The company expects to distribute compensation in the form of USDT token vouchers to eligible users impacted by the trading suspension by December 9. These vouchers will have a validity period of 30 days.
“As AEUR has been well received by the community, including users who might not have realized its standing as a stablecoin, there was a strong demand for AEUR, which resulted in its price deviation,” Binance explained.
It is worth noting that AEUR was initially launched on Binance with a supply of five million coins and the exchange also offered a zero-fee promotion to incentivize trading of this new stablecoin. However, Anchored Coins, the issuer of AEUR, has cautioned users about potential scammers. They have received reports of fraudulent social media accounts posing as them and requesting personal wallet addresses. Anchored Coins emphasized that they never make such requests and urged users to remain vigilant against scams.
