The AEUR Listing Disaster on Binance
Binance has recently faced controversy surrounding the listing of the Anchored Coins EUR (AEUR) stablecoin, resulting in significant losses for its users. The listing was initially announced on December 4, and trading commenced on the same day. To promote the new stablecoin, Binance offered zero-fee trading across four AEUR pairs.
However, on December 5, the stablecoin began experiencing extreme volatility, deviating from its EUR peg. Surprisingly, instead of decreasing below its peg, the price of AEUR started to rise as Bitcoin crossed $44,000 and trading volume increased. The stablecoin’s price eventually reached $3.25, a 200% increase from its initial value.
Binance decided to suspend trading of AEUR at $2.88 due to abnormal volatility, leading to significant losses for users who had purchased the stablecoin at a higher price. The exchange subsequently removed all traces of AEUR from its platform, including trading pages and recent listings.
Community Response and Compensation
Users on social media have accused Binance of fraud and manipulation, with some claiming that the exchange suspended trading because it couldn’t profit from the stablecoin’s high volatility. Others have questioned whether they will be compensated for their losses.
In response to these complaints, Binance has stated that affected traders will be compensated. An updated announcement posted on December 6 explains how compensation will be calculated and distributed in the form of USDT vouchers.
Hot Take: Binance Faces Backlash Over AEUR Listing Disaster
Binance’s decision to list AEUR as a new stablecoin quickly turned into a disaster as extreme volatility caused significant losses for users. This incident has raised concerns about the exchange’s ability to handle stablecoin listings effectively and protect its users from such risks. Binance’s actions, including the suspension of trading and removal of AEUR from its platform, have faced criticism from the crypto community. While the exchange has promised compensation for affected traders, this incident highlights the importance of thorough vetting and risk assessment before listing new cryptocurrencies.
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