The Euro stablecoin issued by Anchored Coins based in Switzerland was listed on Binance on December 4th. Due to unknown reasons, the price suddenly surged by nearly 200%, with the AEUR/USDT trading pair reaching a high of $3.25. This led Binance to halt trading services for spot trading pairs such as AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR, citing “abnormal fluctuations.”
Binance issued an announcement and compensation plan regarding this incident today. Binance stated that on that day, some users were unaware that AEUR was a stablecoin, leading to a surge in short-term demand and ultimately causing a price deviation. For affected users, Binance announced that compensation will be made based on the AEUR price on the Binance spot platform at 09:41 on December 6th (i.e., 1 AEUR = 1.07999 USDT). Compensation will be provided for AEUR holdings net purchased by relevant users during the compensation period (from 01:41:16 to 02:31:59 on December 6, 2023).
As an example provided by the official announcement:
During the compensation period, User A bought 100 AEUR through the BTC/AEUR spot trading pair when the price reached 26,000 AEUR, and then sold 10 AEUR through the same trading pair when the BTC price reached 30,000 AEUR. User A purchased AEUR at a BTC price of 43,600 USDT.
User A’s net purchase of AEUR = (100 – 10) AEUR = 90 AEUR
User A’s average purchase price of AEUR = (100 AEUR / 26,000 AEUR) * 43,600 USDT / 100 AEUR = 1.6769 USDT
Therefore, User A’s total compensation amount = (90 * 1.6769 USDT) – (90 * 1.07999 USDT) = 53.7219 USDT
Users eligible for compensation will receive USDT token vouchers by December 9, 2023. Users can view and redeem them in their account > Rewards Center.