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<p class="is-style-lead">The anchored euro (AEUR) stablecoin, which is supposedly pegged to 1 euro, surged over 200% on Dec. 5 after being listed on the crypto exchange yesterday.</p> 
<p>Throughout most of the day, the AEUR-USDT trading pair hovered around $1.08, aligning closely with the prevailing EUR-USD exchange rate, as per <a href="https://crypto.news/exchanges/binance/" data-type="link" data-id="https://crypto.news/exchanges/binance/">Binance</a>‘s trading data. However, at approximately 17:45 UTC, the token’s value began to climb rapidly, accompanied by high trading volumes, reaching a peak of $3.25.</p> 
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   <p lang="en" dir="ltr">Binance halts trading on euro stablecoin <a href="https://twitter.com/search?q=%24AEUR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$AEUR</a> after it pumped 170% 🤣 <a href="https://t.co/uHgxBgSLQM" target="_blank">pic.twitter.com/uHgxBgSLQM</a></p>— db (@neuralinkdb) <a href="https://twitter.com/neuralinkdb/status/1732106853872521288?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 5, 2023</a>
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<p>Binance responded to this unexpected volatility by halting trading of the token, as announced in a later X post.</p> 
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   <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Binance</a> has suspended trading of <a href="https://twitter.com/search?q=%24AEUR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$AEUR</a> due to abnormal volatility.<br><br>Thanks for your patience and our team is working towards reopening trading soon.<a href="https://t.co/F80OVDG1qk" target="_blank">https://t.co/F80OVDG1qk</a></p>— Binance (@binance) <a href="https://twitter.com/binance/status/1732119193213075548?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 5, 2023</a>
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<p>AEUR is issued by Anchored Coins, a <a href="https://crypto.news/tag/switzerland/" data-type="link" data-id="https://crypto.news/tag/switzerland/">Switzerland</a>-based subsidiary wholly owned by <a href="https://crypto.news/tag/singapore/" data-type="link" data-id="https://crypto.news/tag/singapore/">Singaporean</a> investor and ex-parliamentarian Calvin Cheng, as stated in an earlier <a href="https://www.finextra.com/pressarticle/97762/ex-singapore-parliamentarians-startup-to-issue-swiss-franc-and-euro-stablecoins" target="_blank" rel="noopener">press release</a> this year. Also, per the project’s <a href="https://www.anchoredcoins.com/en/landing/aeur" target="_blank" rel="noopener">website</a>, the token’s value is backed by euro fiat assets and boasts a market capitalization of $5 million.</p> 
<p> You might also like: <a href="https://crypto.news/circle-files-appeal-to-remove-stablecoins-from-secs-binance-lawsuit/"> Circle files appeal to remove stablecoins from SEC’s Binance lawsuit </a> </p> 
<p>The cause behind this abrupt price increase remains unclear. However, the token’s relatively low market cap and limited liquidity could render it susceptible to de-pegging and potential price manipulation.</p> 
<p>This incident highlights the inherent risks associated with stablecoins, which are not immune to periods of price instability on exchanges. According to a <a href="https://crypto.news/large-cap-stablecoins-depegged-600-times-in-2023-moodys/">report</a> by Moody’s Analytics, large-cap fiat-backed stablecoins have experienced de-pegging incidents 609 times until mid-September 2023, influenced by various macroeconomic and coin-specific factors.</p> 
<p>This latest event also coincides with the U.S. Securities and Exchange Commission <a href="https://crypto.news/sec-issues-subpoena-to-paypal-over-its-pyusd-stablecoin/">(SEC) closely monitoring</a> traditional firms looking to issue their own stablecoins amidst an unclear regulatory framework in the U.S.</p> 
<p> Read more: <a href="https://crypto.news/cftc-commissioner-says-binances-4-3-billion-settlement-due-to-rule-breaking-not-fraud/"> CFTC Commissioner says Binance’s $4.3 billion settlement due to rule-breaking, not fraud </a> </p>

Binance halts trading on euro-pegged stablecoin AEUR as it surges over 200%

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