Binance to Compensate Traders for AEUR Stablecoin Price Rally Mistake
Crypto exchange Binance has announced that it will compensate traders who mistakenly bought into the unusual price rally of the AEUR stablecoin. The AEUR stablecoin, issued by Anchored Coins, experienced a 200% increase in price shortly after being listed on the spot market. This caused the AEUR-USDT trading pair to peak at $3.25, much higher than its expected value of $1.07.
Trader Misunderstanding Leads to Price Deviation
Binance attributed this deviation from the stablecoin’s intended value to a misunderstanding by some traders who were unaware that AEUR is a stablecoin. The exchange stated that there was strong demand for AEUR from users who did not realize its nature, resulting in the price deviation.
Limited Liquidity and Zero-Fee Promotion
The AEUR stablecoin had limited liquidity on Binance due to its supply of five million on the platform. In response, Binance offered a zero-fee promotion for trading the stablecoin after its launch.
Suspension of Spot Trading and Compensation Plan
After observing the abnormal price of AEUR, Binance decided to temporarily suspend spot trading for several AEUR trading pairs, including AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR. The exchange has now created a compensation plan for traders who purchased AEUR above its intended value between 12:41 p.m. EST and 1:31 p.m. EST on Tuesday and did not sell them on Binance. The compensation process will begin within the next three days.
Hot Take: Binance Takes Responsibility for Trader Mistake
Binance’s decision to compensate traders for the AEUR stablecoin price rally mistake demonstrates the exchange’s commitment to customer satisfaction. By acknowledging that some traders were unaware of AEUR’s status as a stablecoin, Binance is taking responsibility and ensuring that those affected are properly compensated. This action reinforces Binance’s reputation as a reliable and customer-centric cryptocurrency exchange.
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