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Binance Reimburses Traders Who Purchased AEUR Stablecoin During 200% Increase

According to the company, Binance will reimburse customers who purchased the Euro-pegged AEUR stablecoin during a recent 200% increase.

The company announced on Wednesday that it will develop a compensation plan for users who purchased the stablecoin following a nearly 200% increase in value to over $3. The unexpected increase in value was ascribed to a misinterpretation by some Binance traders who overlooked AEUR’s stablecoin status.

The price of the recently introduced AEUR stablecoin, which is issued by the Swiss company Anchored Coins, shot up 200% on Tuesday just after it was listed on the spot market. The trading pair AEUR-USDT peaked at $3.25, much higher than its predicted value of about $1.07.

The exchange quickly stopped trading for four of the asset’s trading pairs, namely AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR, in reaction to the abrupt spike. The unusual price volatility of the stablecoin was cited as the reason for the decision.

“There was a strong demand for AEUR, which resulted in its price deviation, as it has been well received by the community, including users who might not have realized its standing as a stablecoin,” Binance wrote.

The exchange also stated that traders who bought AEUR on December 5 between 17:41 and 18:31 UTC but were unable to sell them will be eligible for this compensation.

The company stated, “The net AEUR purchase amount made by eligible users during the Compensation Period will count toward the calculation of their respective compensation.” “The computation will be predicated on the AEUR price (i.e., 1.07999 USDT per AEUR) on Binance Spot at 17:41 UTC.”

By December 9, eligible users affected by the trading suspension will receive USDT token vouchers as compensation, the company announced. The 30-day period following the date of distribution is when these vouchers are valid.

The issuer of AEUR, Anchored Coins, issued a warning to the community on December 5 via a LinkedIn post, stating that they had received reports of fraudulent social media accounts posing as them. The impostors requested users to disclose their personal wallet addresses. The company emphasized that it never makes such requests and urged users to be vigilant against such scams. Initially, AEUR had a supply of five million coins on Binance, and the exchange also initially encouraged trading of the new stablecoin with a zero-fee promotion.

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