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Binance Addresses AEUR Price Surge, Announces Compensation for Affected Users

Cryptocurrency exchange Binance has taken steps to compensate users impacted by the recent spike in the price of Anchored Coins EUR (AEUR) stablecoin.

The unexpected surge, reaching nearly 200% and exceeding $3, occurred shortly after the token’s listing on the platform.

Binance, in its Dec. 6 update, attributed the significant deviation in AEUR’s price to a misunderstanding among traders regarding the nature of the stablecoin.

The exchange noted that the community’s positive reception of AEUR, coupled with a lack of awareness about its status as a stablecoin, contributed to the surge in demand and subsequent price fluctuation.

To address the impact on users, Binance announced the creation of a compensation plan.

Eligible traders, who purchased AEUR between 17:41 UTC and 18:31 UTC on Dec. 5 and were unable to sell, will be included in this plan.

The compensation calculation will be based on the net AEUR purchase amount during the specified period, with the reference price set at 17:41 UTC (1.07999 USDT per AEUR). Compensation, in the form of USDT token vouchers, will be distributed to eligible users by Dec. 9, with a 30-day expiration period for the vouchers.

Anchored Coins Warns Against Scams

Simultaneously, Anchored Coins, the stablecoin issuer, issued a cautionary message to the community regarding potential scams.

In a Dec. 5 LinkedIn post, Anchored Coins reported instances of fraudulent social media accounts impersonating the company.

Company Background

Anchored Coins operates as a wholly-owned subsidiary of Calvin Cheng, a Singaporean investor and former parliament member.

The company’s warning underscores the necessity for users to remain vigilant in the face of potential scams and impersonations within the cryptocurrency space.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.