Anchored Euro (AEUR) stablecoin witnessed an unprecedented surge of nearly 200 percent on Binance shortly after its listing on the leading altcoin exchange. Following this development, Binance took sudden action. In an announcement, the exchange stated that it would suspend AEUR transactions for a while. Here are the details…
Binance listed: Altcoin suddenly increased!
As we reported as Kriptokoin.com, yesterday, a stablecoin called Anchored Auro (AEUR) was listed on Binance. Originally trading around $1.08, the AEUR-USDT pair experienced a sudden increase in value and reached a staggering level of $3.25. Responding to the unpredictable price volatility, Binance immediately suspended trading in the AEUR stablecoin to protect users. The AEUR-USDT pair, which closely mirrors the EUR-USD exchange rate, remained stable for most of the day before moving sharply higher yesterday evening. Trading data from Binance indicated significant volume during this surge, prompting the exchange to take precautionary measures.
Binance’s decision to suspend trading in AEUR/USDT, BTC/AEUR, ETH/AEUR and EUR/AEUR pairs came in response to abnormal volatility. As reported by the exchange, the last transaction recorded at around 21:30 reflected a price of approximately $2.89, which was 167% higher than it should have been. Anchored Euro (AEUR) is issued by Anchored Coins, a Switzerland-based entity and wholly owned subsidiary of prominent Singapore investor and former member of parliament Calvin Cheng. According to information provided by the project’s website, the stablecoin, which has a market value of $5 million, is designed to be pegged to the euro and backed by euro fiat assets.
Users are worried
Despite the increase and subsequent suspension, there is currently no clear explanation for the extraordinary price movement. AEUR’s low market capitalization and limited liquidity raise concerns about its susceptibility to de-pegging through potential price manipulation. This incident is a stark reminder of the risks inherent in stablecoins, especially in the face of market volatility. Stablecoins can experience periods of instability on exchanges, including those backed by fiat assets. Pending further developments, investors are advised to exercise caution when trading lesser-known stablecoins.
For example, research can be done by looking at the largest stablecoins by market capitalization. According to CoinMarketCap data, the largest among them is USDT, with a market value of $90 billion. USDC comes next with a market value of $24 billion. It can also be said that stablecoins such as TUSD and FDUSD are also popular.
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