Binance to Compensate Users Affected by AEUR Depeg:
- Binance compensates traders after the unexpected rise of the AEUR stablecoin.
- AEUR, intended to equal the euro, saw its price skyrocket shortly after its launch.
- The compensation plan applies to purchases made within a specific timeframe.
Unexpected Depeg for the AEUR Stablecoin
Binance has announced a compensatory measure for traders who purchased the AEUR stablecoin during its unexpected depeg.
AEUR, designed to reflect the value of the euro, experienced a sudden 200% increase shortly after its introduction to the spot market, around 10 am yesterday.
In the end, the AEUR-USDT trading pair reached a peak of $3.25, well above its expected value of approximately $1.07. This divergence was due to an unusual demand for a stablecoin, particularly from traders who did not seem to understand the stable nature of AEUR.
“As AEUR was well received by the community, including users who may not have realized its status as a stablecoin, there was a high demand for AEUR, which led to a price deviation.“
Binance announced in a statement.
Binance’s Compensation Plan
In response to this anomaly, Binance suspended spot trading for several pairs, including AEUR.
Subsequently, Binance launched a compensation program for users who purchased AEUR above its expected value of $1.07.
Eligible traders are those who acquired AEUR between 12:41 pm and 1:31 pm (EST) on Tuesday, without selling it on Binance.
The compensation process will commence within three days of the depeg.
