Leading cryptocurrency exchange Binance made news on Monday by adding the’stablecoin’ Anchored Coins EUR (AEUR) to its list of tradable assets. A special deal offered free trading expenses initially. The excitement was short-lived as the cryptocurrency rose 200%, leading Binance to halt trades the next day due to “abnormal volatility.”
Swiss business Anchored Coins claims that AEUR stablecoin is tied to the euro and maintains value. Initial trading of the stablecoin was approximately $1.08. Suddenly, at 17:45 UTC, trade volumes pushed its price to $3.25, according to CoinDesk.
Binance data shows AEUR fell to $1.71 before trading was banned. The stablecoin had a $13.99 million market cap, $34.61 million 24-hour trading volume, and $5 million in circulation when suspended. CoinDesk reported the last deal at $2.89, 167% higher than the euro.
![Binance delists AEUR stablecoin after 200% launch price surge image 28](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/12/image-28.png?resize=1024%2C576&ssl=1)
![Binance delists AEUR stablecoin after 200% launch price surge image 28](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/12/image-28.png?resize=1024%2C576&ssl=1)
Three months before, Singaporean investor and former MP Calvin Cheng’s Anchored Coins launched AEUR and ACHF, a Swiss currency stablecoin. Since spreading news of AEUR’s incorporation into Binance, Cheng, the ‘Hon. Consul of Serbia to Singapore,’ has kept a low profile on social media.
Binance first acknowledged the trading outage and assured users that their team was working to restart trading. AEUR traders accused the exchange of market manipulation and complained about their losses. After the price increase, Binance said it will pay dealers, citing significant demand from people ignorant of AEUR’s stablecoin status.
Compensation will begin within three days for traders who bought and held AEUR between 12:41 p.m. EST and 1:31 p.m. EST on the fateful Tuesday. Binance did not cap compensation for affected traders.
In order to protect you, our users, #Binance suspended trading for $AEUR on December 5 due to abnormal volatility.
— Binance (@binance) December 6, 2023
Within 72 hours of this announcement, Binance will facilitate and implement the AEUR project team’s compensation plan for impacted users.https://t.co/P0ygcDYBNK
Anchored Coins warned on its LinkedIn profile, its only social media presence save a public Telegram group, after the occurrence. The company detected fake Anchored Coins social media accounts asking for wallet addresses. This warning reminds AEUR traders to be vigilant for frauds after the surprise price surge.
Stablecoins, even on Binance, pose hazards, as the cryptocurrency world deals with AEUR’s unparalleled volatility.
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