Binance Announces Compensation for Users Affected by AEUR Exceeding Peg
In a recent development, Binance launched its stablecoin AEUR pegged to the Euro, only to swiftly suspend trading after its value surged threefold, surpassing the expected capital reserve requirement. The exchange promptly announced compensation for affected users shortly after suspending AEUR transactions.
The sudden spike in AEUR’s price, spurred by high demand and community interest, led to its trading suspension across various pairs, including AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR spot trading pairs at 2023-12-05 18:31:59 (UTC). This protective measure aimed to shield users amidst the price deviation.
Within 72 hours of this announcement, Binance will facilitate and implement the AEUR project team’s compensation plan for impacted users.https://t.co/P0ygcDYBNK
— Binance (@binance) December 6, 2023
Binance, renowned for its proactive market monitoring, moved decisively to safeguard its users’ interests. The exchange released a statement outlining the compensation plan, a gesture in line with its commitment to prioritizing its user base.
The compensation plan is structured to aid users who purchased AEUR during the specified Compensation Period—between 2023-12-05 17:41:16 (UTC) and 2023-12-05 18:31:59 (UTC)—and were unable to sell their holdings before the suspension. Eligible users meeting these criteria will be entitled to compensation.
The compensation amount will be calculated based on the net AEUR purchase amount during the Compensation Period, factoring in the user’s average AEUR purchasing price against the price of AEUR on Binance Spot at 2023-12-05 17:41 (UTC), which stood at 1.07999 USDT per AEUR.
An example provided by Binance illustrates the compensation calculation methodology, citing scenarios involving AEUR purchases and sales during the Compensation Period. For instance, if a user purchased 100 AEUR at a certain rate and subsequently sold 10 AEUR before the suspension, the compensation amount would be computed based on these transactions and the prevailing rates.
The compensation will be distributed to eligible users in the form of USDT token vouchers by 2023-12-09. These vouchers will be redeemable through the user’s Binance account under the Profile > Rewards Hub section. However, it’s important to note that the distributed vouchers will expire within 30 calendar days after issuance, necessitating users to claim and utilize them before the expiration date.
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