In a significant move, Binance, a leading cryptocurrency exchange, has announced a comprehensive compensation plan for users affected by the unexpected price surge of the AEUR stablecoin. This decision comes after the Euro-pegged cryptocurrency experienced an abnormal 200% increase in value, confusing traders and leading to a trading suspension.
Binance reacts to AEUR value fluctuation
The AEUR stablecoin, issued by Swiss-based Anchored Coins, was recently introduced on Binance‘s spot market. Shortly after its debut, the AEUR-USDT trading pair saw its value skyrocket to $3.25. This was a significant deviation from its pegged rate of around $1.07. The surge was attributed to a misunderstanding among traders about the nature of AEUR as a stablecoin.
This incident led to Binance halting trades for four AEUR pairs, including AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR. The exchange took this step due to the extreme volatility observed, which was not typical for a stablecoin.
Binance’s response to this unusual event includes a well-structured compensation scheme. The exchange will compensate those who purchased AEUR between 17:41 UTC and 18:31 UTC on December 5. This period is critical, as it marks the timeframe when the stablecoin’s value was most inflated.
The compensation calculation will be based on the AEUR price at 17:41 UTC, which was 1.07999 USDT per AEUR. Eligible users will receive compensation in the form of USDT token vouchers. These vouchers are set to be distributed by December 9 and will remain valid for 30 days.
Vigilance against scams and ensuring security
In addition to addressing the trading anomaly, AEUR’s issuer, Anchored Coins, has warned about potential fraudulent activities. Following reports of imposters posing as Anchored Coins on social media, the company urged the community to be cautious. They emphasized that they never request personal wallet addresses from users, highlighting the need for vigilance against such scams.
This incident underscores the volatility and complexities of the cryptocurrency market. Binance’s swift action to compensate affected users demonstrates its commitment to maintaining trust and transparency in its operations.
