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<a href="https://bitcoinworld.co.in/binance-halts-stablecoin-aeur-trading-as-it-surges-over-200/" title="Binance Halts Stablecoin AEUR Trading As It Surges Over 200%" rel="noopener noreferrer nofollow"></a>
The euro-pegged stablecoin AEUR, which is supposedly pegged to 1 euro, surged over 200% on Dec. 5 after being listed on the crypto exchange yesterday.
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 Binance’s trading data.&nbsp;
However, at approximately 17:45 UTC, the token’s value began to climb rapidly, accompanied by high trading volumes, reaching a peak of $3.25.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Binance halts trading on euro stablecoin <a href="https://twitter.com/search?q=%24AEUR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$AEUR</a> after it pumped 170% <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f923.png" alt="🤣" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/uHgxBgSLQM" rel="noopener noreferrer nofollow">pic.twitter.com/uHgxBgSLQM</a>
 — db (@neuralinkdb) <a href="https://twitter.com/neuralinkdb/status/1732106853872521288?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 5, 2023</a>
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Binance responded to this unexpected volatility by halting trading of the token, as announced in a later X post.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Binance</a> has suspended trading of <a href="https://twitter.com/search?q=%24AEUR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$AEUR</a> due to abnormal volatility.
 Thanks for your patience and our team is working towards reopening trading soon.<a href="https://t.co/F80OVDG1qk" rel="noopener noreferrer nofollow">https://t.co/F80OVDG1qk</a>
 — Binance (@binance) <a href="https://twitter.com/binance/status/1732119193213075548?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 5, 2023</a>
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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 <a href="https://www.finextra.com/pressarticle/97762/ex-singapore-parliamentarians-startup-to-issue-swiss-franc-and-euro-stablecoins" rel="noopener noreferrer nofollow">press</a> release this year.&nbsp;
See Also: <a class="row-title" href="https://bitcoinworld.co.in/sec-delays-its-decision-on-grayscales-application-for-spot-ethereum-etf/" aria-label="“SEC Delays Its Decision On Grayscale’s Application For Spot Ethereum ETF” (Edit)" rel="noopener noreferrer nofollow">SEC Delays Its Decision On Grayscale’s Application For Spot Ethereum ETF</a>
Also, per the project’s website, the token’s value is backed by euro fiat assets and boasts a market capitalization of $5 million.
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.
This incident highlights the inherent risks associated with stablecoins, which are not immune to periods of price instability on exchanges.&nbsp;
According to a report 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.
This latest event also coincides with the US Securities and Exchange Commission (SEC) closely monitoring traditional firms looking to issue their own stablecoins amidst an unclear regulatory framework in the US.
See Also: <a class="row-title" href="https://bitcoinworld.co.in/binance-announced-zero-fee-trading-promotion-for-6-altcoin-trading-pairs/" aria-label="“Binance Announced Zero-fee Trading Promotion for 6 Altcoin Trading Pairs” (Edit)" rel="noopener noreferrer nofollow">Binance Announced Zero-fee Trading Promotion for 6 Altcoin Trading Pairs</a>
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 Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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The post <a href="https://bitcoinworld.co.in/binance-halts-stablecoin-aeur-trading-as-it-surges-over-200/" rel="noopener noreferrer nofollow">Binance Halts Stablecoin AEUR Trading As It Surges Over 200%</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

Binance Halts Stablecoin AEUR Trading As It Surges Over 200%

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