Binance halts AEUR stablecoin buying and selling after a 200% surge days after itemizing

• Binance abruptly halts AEUR buying and selling.
• The euro-pegged stablecoin skilled a rare 200% surge simply sooner or later after its itemizing.
• AEUR is supposedly backed by euro fiat property.

Binance has abruptly halted buying and selling on the AEUR stablecoin, pegged to the euro, as its worth soared over 200%.

The sudden surge on December 5 raised considerations, resulting in a swift response from the change. This incident sheds mild on the dangers related to stablecoins, notably these with decrease market caps and liquidity.

AEUR’s rollercoaster trip 

The AEUR stablecoin, pegged to the euro at 1:1, witnessed an unprecedented surge of over 200% on Binance, only a day after its itemizing. Initially buying and selling round $1.08, mirroring the prevailing EUR-USD fee, the token’s worth skyrocketed to $3.25 at 17:45 UTC.

Binance promptly suspended buying and selling on account of “irregular volatility,” indicating considerations concerning the stability of the coin.

#Binance has suspended buying and selling of $AEUR on account of irregular volatility.

Thanks in your persistence and our workforce is working in the direction of reopening buying and selling quickly.https://t.co/F80OVDG1qk

— Binance (@binance) December 5, 2023

What’s AEUR stablecoin?

AEUR is issued by Anchored Cash, a Switzerland-based subsidiary owned by Singaporean investor Calvin Cheng. Touted to be backed by euro fiat property, the stablecoin boasts a $5 million market capitalization.

Nonetheless, its sudden surge and subsequent buying and selling halt underscore potential vulnerabilities. The coin’s decrease market cap and restricted liquidity create an surroundings the place de-pegging and manipulation dangers are heightened.

This sudden incident on Binance serves as a stark reminder that stability challenges can afflict even seemingly safe stablecoins.