Yen Stablecoin $GYEN in a Standoff With Coinbase, Other Major Crypto Currency Exchanges
Twitter users also say that some of them were given free GYEN, in a ratio of 20 to one of what they owned
November 22, 2021
11/19: Beginning on Friday Los Angeles time, Coinbase froze the Yen based Stablecoin GYEN. This just three days after GYEN and also POWR began trading on Coinbase and other exchanges.
Before they froze it, the crypto-currency which should be fixed at the price of one yen, rose to 5 cents each. GYEN should be worth .88 cents each (less than one U.S. cent), the value of the real Japanese Yen.
The company behind the GYEN initial coin offering, GMO-Z.com Trust Company, says that GYEN is "the first regulated digital JPY, GYEN. https://stablecoin.z.com/. They claim to hold one Japanese Yen backing each one of their 3 billion GYEN coins, or about $28,000,000 US Dollars. This is not on the surface, an incredible claim.
Multiple users are also reporting on Twitter that they are unable to transfer $GYEN from Coinbase, and trading in GYEN is still suspended. It cannot be transferred anywhere--not even to Coinbase wallet. If it cannot be transferred or traded, it's unclear what you own. But wait, there's more.
Twitter users also say that some of them were given free GYEN, in a ratio of 20 to one of what they owned. This for no apparent reason. I experienced the same phenomena. I owned just $400 worth of GYEN, but it suddenly was worth $8800, after someone sent me around 1 million GYEN.
What does Coinbase itself say? On Nov. 20, @Coinbase tweeted: "We continue to work towards a fix due to technical reasons related to GYEN and POWR. Thanks for your patience while we investigate. Further updates will be communicated through our status page: https://status.coinbase.com". They have described sending GYEN as "temporarily disabled." Coinbase account holders are unable to send, buy or sell GYEN. Some accounts wherein customers hold GYEN, have also been restricted.
Coinbase has halted all trading or transferring of GYEN, but it remains in my account; twenty times more GYEN than I bought. All of which says to me that there is some sort of standoff between them and the makers of GYEN. But who knows. Opinions varied on Social media of course. The following opinions are from Reddit:
"I got burned by $GYEN 75k- stablecoin token scam. Running now on Coinbase. My $411 became $41,000 but coinbase did not allow me to sell Wtf!" Reddit user 1 wrote.
"Did anyone see what happened at the last second? it went up like 10x solid green bar - change in price not reflected. then the graph disappears, and comes back showing no pump." user 2 wrote.
"Idiots buy it thinking it's a regular alt coin like doge or iotx. Some ppl who can't be bothered to research what they buy end up with this stablecoin that's pegged to the Yen. Funny as fk really." User 3 wrote.
"I bought some, felt good, read the description on it 30 mins later, googled Yen to USD, traded it quick with a tad profit. This is going to end ugly for some" User 4 wrote.
One theory is that this is all simply a malfunction at Coinbase, but I doubt it. It seems more plausible to me that the GYEN folks are creating a class of newly rich with GYEN Coinbase customers, who will demand that they resume trading the coin. Again, JMHO. Standby, this could get interesting.
Disclosure: The author of this article owns just over 1,000,000 GYEN coins.