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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 <a rel="dofollow" title="trading" href="https://thebittimes.com/tag/trading.html">trading</a> pair hovered around $1.08, aligning closely with the prevailing EUR-USD exchange rate, as per Binance’s <a rel="dofollow" title="trading" href="https://thebittimes.com/tag/trading.html">trading</a> data. However, at approximately 17:45 UTC, the token’s value began to climb rapidly, accompanied by high <a rel="dofollow" title="trading" href="https://thebittimes.com/tag/trading.html">trading</a> volumes, reaching a peak of $3.25.</p> 
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    <p lang="en" dir="ltr">Binance halts trading on euro stablecoin $AEUR after it pumped 170% pic.twitter.com/uHgxBgSLQM</p>— db (@neuralinkdb) December 5, 2023
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 <p>Binance responded to this unexpected volatility by halting <a rel="dofollow" title="trading" href="https://thebittimes.com/tag/trading.html">trading</a> of the token, as announced in a later X post.</p> 
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    <p lang="en" dir="ltr">#Binance has suspended <a rel="dofollow" title="trading" href="https://thebittimes.com/tag/trading.html">trading</a> of $AEUR due to abnormal volatility.<br><br>Thanks for your patience and our team is working towards reopening <a rel="dofollow" title="trading" href="https://thebittimes.com/tag/trading.html">trading</a> soon.https://t.co/F80OVDG1qk</p>— Binance (@binance) December 5, 2023
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 <p>AEUR is issued by Anchored Coins, a Switzerland-based subsidiary wholly owned by Singaporean investor and ex-parliamentarian Calvin Cheng, as stated in an earlier press release this year. Also, per the project’s website, the token’s value is backed by euro fiat assets and boasts a market capitalization of $5 million.</p> 
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 <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 <a rel="dofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a>s, which are not immune to periods of price instability on exchanges. According to a report by Moody’s Analytics, large-cap fiat-backed <a rel="dofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a>s 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 (SEC) closely monitoring traditional firms looking to issue their own <a rel="dofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a>s amidst an unclear regulatory framework in the U.S.</p> 
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> CFTC Commissioner says Binance’s $4.3 billion settlement due to rule-breaking, not fraud 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/binance-halts-trading-on-euro-pegged-stablecoin-aeur-as-it-surges-over-200-tbt72756.html">https://thebittimes.com/binance-halts-trading-on-euro-pegged-stablecoin-aeur-as-it-surges-over-200-tbt72756.html</a></p>

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

TheBitTimes

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