Binance, one of the world’s largest cryptocurrency exchanges, announced that it will compensate users who were impacted by an abrupt increase in the price of the Anchored Coins EUR (AEUR) stablecoin. AEUR appreciated by almost 200%, reaching more than US$3 after being listed on the platform on December 5th. However, trading was immediately suspended in four trading pairs, including AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR, due to abnormal volatility.
Binance attributed this increase in AEUR price to traders’ lack of understanding of AEUR’s nature as a stablecoin. The company explained that strong demand for the token from the community, including users who may not have realized it was a stablecoin, resulted in the price disparity. As a result, Binance plans to create a compensation plan for those who purchased AEUR at inflated prices. Traders eligible for compensation are those who purchased AEUR between 17:41 UTC and 18:31 UTC on December 5th and were unable to sell them. Compensation is calculated based on the AEUR price on Binance Spot at 17:41 UTC (which was 1.07999 USDT per AEUR). Eligible users will receive compensation via USDT token vouchers until December 9th, which will expire 30 calendar days after distribution.
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AEUR: Increase of almost 200% causes suspension on Binance
While Binance deals with issues related to AEUR, Anchored Coins, the stablecoin issuer, has issued a warning to the community about possible scams. The company said it has received reports of fraudulent social media accounts impersonating it and asking users to share their personal wallet addresses. Anchored Coins reinforced that it never makes this type of request and asked users to be alert to possible scammers.
Anchored Coins is a wholly owned subsidiary of Singaporean investor and former member of parliament Calvin Cheng.
In this scenario, Binance is demonstrating responsibility by acknowledging the issue and taking steps to compensate affected users. At the same time, Anchored Coins is warning the community to avoid potential AEUR-related scams. It is essential that investors are aware of the nuances of the cryptocurrency and stablecoin market to avoid unpleasant surprises.
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The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/binance-anuncia-compensacao-para-usuarios-afetados-por-aumento-no-preco-da-aeur/
