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Binance Lists Small Cap ‘Euro-Pegged’ AEUR, But It All Ends In Disaster

Press Releases Crypto News Bitcoinist Binance Lists Small Cap ‘Euro-Pegged’ AEUR, But It All Ends In Disaster

Binance has found itself at the center of controversy once more after a stablecoin listing of the AEUR went terribly wrong. The listing of the Anchored Coins EUR (AEUR) has ended with what can only be described as a disaster that has left the exchange’s users with ample losses.

The Binance AEUR Saga

On Monday, December 4, Binance announced that it would be listing a new stablecoin called the Anchored Coins EUR (AEUR). This was another normal listing that went as planned for the exchange and trading began on the same day.

As a way to promote this new stablecoin, the exchange announced zero-fee trading across four AEUR pairs, including AEUR/BTC, AEUR/ETH, AEUR/USDT, and AEUR/EUR. Trading kicked off across all of these pairs on the exchange with volume coming in under $10 million.

For the first day, the stablecoin traded inside its EUR peg, maintaining a value of around $1.06 to $1.08. However, everything would change on Tuesday, December 5, when the stablecoin began to see a lot of volatility which attracted a lot of attention.

Eventually, the stablecoin would ‘depeg’ from the EUR. But unlike normal depegs which would send the price below its peg, the AEUR price started to move up. This happened as Bitcoin crossed $44,000 and volume across the AEUR pairs rose rapidly.

The AEUR stablecoin initially moved up above $2, and once investors caught on to the movement, it attracted a lot of volume. This volume quickly rose to over $20 million and the price of the ‘stablecoin’ continued to fluctuate heavily. Eventually, the coin’s price would cross $3, a 200% increase above it, eventually peaking at $3.25.

One important factor about the AEUR stablecoin is that it has a very low supply. According to the team, the 5 million token supply was to reflect the 5 million EUR that the team held back to the coin.

Eventually, Binance would Go to Source to See Full Article
Author: Scott Matherson

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