Crypto Exchange Binance Reimburses Users and Delists AEUR Stablecoin
Crypto exchange Binance is compensating users and removing the Anchored Coins Euro (AEUR) stablecoin from its platform. This decision comes after the token experienced a value surge of over 200% following its listing.
Refunds for Affected Users
Binance announced that it will reimburse users who purchased AEUR at an inflated valuation and were unable to sell it after trading was halted. Users will receive a refund of the premium amount above the peg of 1 AEUR = 1.08 Tether (USDT).
The exchange explained that the sudden demand for AEUR led to price deviations and attracted the attention of community users who did not realize it was a stable currency.
Impact on Trading Pairs
The significant price volatility of AEUR also affected the pricing of various trading pairs, including Bitcoin, Ether, and the euro. Binance stated that the resumption time for these trading pairs will be communicated separately to avoid potential losses for other investors.
About AEUR Stablecoin
AEUR is issued by Anchored Coins, a fintech firm based in Zug, Switzerland. It is backed 1:1 with reserves held exclusively with Swiss FINMA-licensed banks. The stablecoin is compliant with Anti-Money Laundering obligations and is currently minted on Ethereum and BNB Smart Chain.
Hot Take: Binance Takes Action on AEUR Surge
Binance has swiftly responded to the surge in value of the AEUR stablecoin by compensating affected users and delisting the token. This proactive approach aims to address potential losses for investors and maintain stability within the exchange. By refunding the premium amount above the peg, Binance demonstrates its commitment to protecting user interests and ensuring fair trading conditions. The impact on various trading pairs further emphasizes the need for caution and transparency in the cryptocurrency market. Binance’s actions serve as a reminder of the importance of understanding the nature and characteristics of digital assets before investing.
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