Binance delists ‘stablecoin’ AEUR after it pumped 200% on launch

Binance listed ‘stablecoin’ Anchored Coins EUR (AEUR) with a zero trading fee promotion on Monday, which pumped nearly 200% before the crypto exchange halted trades the next day due to “abnormal volatility.”

Swiss-based Anchored Coins claims that its AEUR stablecoin is pegged to the euro. Upon launch, it traded around $1.08 as intended until 17:45 UTC — when high volumes raised the price up to $3.25, CoinDesk reports.

According to Binance’s site, AEUR had crept down to $1.71 when the stablecoin was pulled. It lists the stablecoin’s market cap at $13.99 million at press time, with a 24 hour volume of $34.61 million and $5 million in circulation. CoinDesk noted that the last trade was made for $2.89, or 167% beyond the price of the euro.

Read more: Moody’s reports 600 stablecoin depegs in 2023

Anchored Coins was founded and wholly owned by Singaporean investor and former MP Calvin Cheng. It announced AEUR together with ACHF, a Swiss franc-backed ‘stablecoin,’ three months ago. Cheng, currently the ‘Hon. Consul of Serbia to Singapore,’ has not posted on X since sharing news of AEUR’s listing on Binance.

Binance calms AEUR traders with compensation promise

In its initial response, Binance said that trading was down — but that its “team is working towards reopening trading soon.” The post on X (formerly Twitter) received several accusatory responses from AEUR traders.

“You have literally scammed us,” one user wrote. “You manipulated the market and wipe[d] out everything.”

“Will you cover our losses?” Another queried.

Binance has since announced that it will, in fact, compensate traders. The crypto exchange said that the price surge occurred due to traders who were unaware of AEUR’s nature as a stablecoin.

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

Read more: Binance invested heavily in lobbying before guilty plea

Traders who bought and maintained AEUR between 12:41 p.m. EST and 1:31 p.m. EST on Tuesday will be eligible for compensation. Payments will begin within the next three days, Binance said, but didn’t mention a cap on compensating traders.

AEUR traders beware of scammers

Anchored Coins has eluded to the news on LinkedIn, its sole social media presence apart from a public Telegram group, with a concerning report that AEUR traders are already being targeted by scammers.

“Amid the recent news surrounding AEUR we are receiving reports of fradulent social media accounts claiming to be Anchored Coins requesting users to share their personal wallet addresses.”

“Happy trading!” It added.

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