The
anchored
euro
(AEUR)
stablecoin,
which
is
supposedly
pegged
to
1
euro,
surged
nearly
200%
Tuesday
on
Binance
after
being
listed
on
the
crypto
exchange
yesterday.
The
AEUR-USDT
pair
was
trading
at
around
$1.08
for
the
most
part
of
the
day,
roughly
in
line
with
the
EUR-USD
exchange
rate
at
the
time,
Binance
trading
data
shows.
The
token
started
to
rise
sharply
at
around
17:45
UTC
with
high
volumes,
hitting
a
high
of
$3.25.
The
platform
suspended
trading
with
the
token
due
to
“abnormal
volatility,”
Binance
later
said
in
an
X
(formerly
Twitter)
post.
The
token’s
order
book
–
aggregating
traders’
buy
and
sell
orders
–
on
Binance
shows
that
the
last
trade
was
executed
at
18:31
UTC
at
around
$2.89,
still
167%
higher
than
its
intended
value.
AEUR
is
issued
by
Switzerland-based
Anchored
Coins,
a
wholly-owned
subsidiary
of
Singapore
investor
and
former
parliament
member
Calvin
Cheng,
according
to
a
press
release
from
earlier
this
year.
The
token’s
value
is
supposed
to
be
backed
by
euro
fiat
assets
and
has
a
market
capitalization
of
$5
million,
the
project’s
website
shows.
There
was
no
apparent
reason
for
the
unusual
price
surge.
However,
the
token’s
low
market
cap
and
limited
liquidity
in
theory
could
make
it
more
vulnerable
to
de-pegging
by
potential
price
manipulation.
The
event
underscores
that
stablecoins
are
prone
to
periods
of
price
instability
on
exchanges.
Large-cap
fiat-backed
stablecoins
de-pegged
in
more
than
600
instances
this
year,
Moody’s
Analytics
reported
last
month.
