Cryptocurrency exchange Binance is refunding users and delisting the Anchored Coins Euro (AEUR) stablecoin after it surged over 200% in value following its listing.
In an announcement on December 6th, Binance stated that it would compensate users who purchased AEUR at the elevated price and were unable to sell it when trading was suspended. Affected users will receive a refund at a higher than the fixed rate of 1 AEUR = 1.08 Tether (USDT) as compensation. The exchange explained:
“Upon the launch of AEUR, it garnered significant attention from users. However, some users did not realize that AEUR is a stablecoin when they purchased it. There was a rapid surge in demand within a short period, resulting in a price discrepancy.”
The price volatility also affected the prices of various AEUR trading pairs, including Bitcoin (BTC), Ether (ETH), and the Euro, all of which fall within the exchange’s compensation plan. “To prevent potential losses to other investors, the resumption time of immediate AEUR trading pairs will be separately announced,” Binance noted. The stablecoin is currently suspended for trading.
AEUR is issued by Anchored Coins, a fintech company based in Zug, Switzerland. It is part of the country’s self-regulatory organization Verein zur Qualitätssicherung von Finanzdienstleistungen (VQF), confirmed by the Swiss Financial Market Supervisory Authority (FINMA), which mandates the company to comply with anti-money laundering obligations.
Anchored Coins claims that each AEUR is “backed 1:1 by reserves held exclusively by banks licensed by FINMA Switzerland.” The company’s stablecoins are currently minted on the Ethereum and BNB Smart Chain.