- Binance abruptly halts AEUR trading.
- The euro-pegged stablecoin experienced an extraordinary 200% surge just one day after its listing.
- AEUR is supposedly backed by euro fiat assets.
Binance has abruptly halted trading on the AEUR stablecoin, pegged to the euro, as its value soared over 200%.
The unexpected surge on December 5 raised concerns, leading to a swift response from the exchange. This incident sheds light on the risks associated with stablecoins, particularly those with lower market caps and liquidity.
AEUR’s rollercoaster ride&
The AEUR stablecoin, pegged to the euro at 1:1, witnessed an unprecedented surge of over 200% on Binance, just a day after its listing. Initially trading around $1.08, mirroring the prevailing EUR-USD rate, the token’s value skyrocketed to $3.25 at 17:45 UTC.
Binance promptly suspended trading due to “abnormal volatility,” indicating concerns about the stability of the coin.
#Binance has suspended trading of $AEUR due to abnormal volatility.
Thanks for your patience and our team is working towards reopening trading soon.https://t.co/F80OVDG1qk
— Binance (@binance) December 5, 2023
What is AEUR stablecoin?
AEUR is issued by Anchored Coins, a Switzerland-based subsidiary owned by Singaporean investor Calvin Cheng. Touted to be backed by euro fiat assets, the stablecoin boasts a $5 million market capitalization.
However, its sudden surge and subsequent trading halt underscore potential vulnerabilities. The coin’s lower market cap and limited liquidity create an environment where de-pegging and manipulation risks are heightened.
This unexpected incident on Binance serves as a stark reminder that stability challenges can afflict even seemingly secure stablecoins.
The post Binance halts AEUR stablecoin trading after a 200% surge days after listing appeared first on CoinJournal.
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