AEUR, a stablecoin pegged to the Euro, experienced an unanticipated surge in value. Binance has stepped forward to compensate traders who acquired AEUR.
The AEUR stablecoin, which generally mirrors the value of the Euro, peaked at $3.25, a significant increase of 200 percent from its anticipated value of approximately $1.07. This surge transpired with the introduction of AEUR to the spot market.
The Swiss-based Anchored Coins-issued AEUR deviated significantly from its intended consistent price by experiencing a substantial increase in value.
Unaware of the stablecoin character of AEUR, a few Binance traders were responsible for the spike. As a result, a robust demand arose, prompting this unforeseen price increase.
Binance’s Reaction to AEUR Surge
To evaluate and resolve the instability, Binance promptly implemented corrective actions to mitigate the turmoil by temporarily halting spot trading on multiple AEUR pairs, namely AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR.
The exchange then disclosed a compensation scheme for those who acquired AEUR over its face value between 12:41 p.m. and 1:31 p.m. EST on Tuesday.
Traders eligible to receive this compensation in the coming days are those who maintained their AEUR holdings on Binance without engaging in additional selling.
The compensation plan exemplifies Binance’s dedication to preserving an equitable and open trading milieu. Given the limited liquidity of AEUR at the time, when the platform had a supply of five million coins, this action is especially consequential. Additionally, initially, the exchange provided a fee-free promotion to encourage trading of the novel stablecoin.
