Binance announces compensation for users who bought AEUR at inflated prices

Binance attributed the trading anomaly to markets misunderstanding the nature of the token, while Anchored Coins warns of scammers impersonating its accounts.

Cryptocurrency exchange Binance said it would compensate users impacted by a recent deviation in the price of Anchored Coins EUR (AEUR) stablecoin.

On Dec. 5, AEUR’s value surged nearly 200% to more than $3 after the cryptocurrency platform listed it. The exchange promptly suspended trading for the asset’s four trading pairs, including the AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR, citing the abnormal volatility of the stablecoin price.

In its Dec. 6 update, Binance attributed AEUR’s price to a lack of understanding among traders about AEUR’s nature as a stablecoin. According to the firm:

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

As a result, the exchange will create a compensation plan for those who purchased the stablecoin above its intended value within the next 72 hours. It stated that eligible traders for this compensation are those who purchased AEUR between 17:41 UTC and 18:31 UTC on Dec. 5 and were unable to sell them. Binance added:

“Eligible users’ net AEUR purchase amount during the Compensation Period will count toward the calculation of their respective compensation. The calculation will be based on the price of AEUR on Binance Spot at 17:41 UTC (i.e., 1.07999 USDT per AEUR).”

The company said that the eligible users will receive compensation through USDT token vouchers by Dec. 9. These vouchers will expire within 30 calendar days after distribution.

AEUR warns of scams

The stablecoin issuer, Anchored Coins, advised the community to be wary of scammers.

In a Dec. 5 LinkedIn post, Anchord Coins announced that it received reports of fraudulent social media accounts impersonating it and requesting users to share their personal wallet addresses. It reiterated that it never makes such requests.

Anchored Coins is a wholly-owned subsidiary of Singapore investor and former parliament member Calvin Cheng.

Posted In: Binance, Stablecoins
Author
Oluwapelumi Adejumo Journalist at CryptoSlateOluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Jacob Oliver Editor / Reporter at CryptoSlateJacob Oliver is a recovering academic and English teacher turned crypto journalist and web3 writer. He holds a Ph.D. from the University of Washington.
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