Leading cryptocurrency exchange Binance has decided to delist the Anchored Coins Euro (AEUR) stablecoin, accompanied by a reimbursement initiative for affected users. The decision comes in response to a remarkable surge of over 200% in AEUR’s value following its listing on the exchange.
Binance, in an announcement on December 6, disclosed its plans to compensate users who purchased AEUR at an inflated valuation and were unable to sell it due to trading halts. Users impacted by this market event will be refunded a portion of the premium amount above the stable peg of 1 AEUR = 1.08 Tether USDT.
The exchange shed light on the situation, stating, “After AEUR went online, it attracted the attention of community users. However, some users did not realize that AEUR was a stable currency when they purchased it. Demand surged in the short term, resulting in price deviations.”
Impact on Trading Pairs and Suspension
The significant price volatility of AEUR also influenced the pricing of various trading pairs, including Bitcoin (BTC), Ether, and the euro. Binance, with the goal of mitigating potential losses for investors, announced the suspension of AEUR spot trading pairs. The resumption timeline for these pairs will be communicated separately.
Currently, AEUR is suspended for trading on the Binance exchange, and the company aims to address the situation in a manner that safeguards the interests of its user base.
Anchored Coins, a fintech firm based in Zug, Switzerland, is the issuer of AEUR. The stablecoin is part of the Verein zur Qualitätssicherung von Finanzdienstleistungen (VQF), a self-regulatory organization in Switzerland endorsed by the Swiss Financial Market Supervisory Authority (FINMA). This endorsement imposes Anti-Money Laundering obligations on the firm.
Anchored Coins asserts that each AEUR is “backed 1:1 with the reserves held exclusively with Swiss FINMA-licensed banks.” Currently, the stablecoins are minted on the Ethereum and BNB Smart Chain networks.