Santa Monica Observer - Community, Diversity, Sustainability and other Overused Words

By Samuel Alioto
Observer Staff Writer 

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

People in Carlsbad, CA pick up cash from the side of the road on Nov. 17, after an accident involving a Brinks truck

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.

https://status.coinbase.com/

Coinbase maintains they've disabled trading in POWR and GYEN while they work out a technical problem.

"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.

 
 

Reader Comments(36)

tony52 writes:

On November 17, I bought gyen coins for 38 thousand dollars. The price of this coin rose to 34 cents during the year.Seeing this 34 cent price, I thought that it would reach these prices again.But within two days they reduced the price to 0.0087 cents.I saw that the price of the gyen coin I bought on Friday was 766.906.89 thousand dollars. If coinbase had not closed the buying and selling, maybe I would have traded my money. And I would have made more money. I am a victim now I want my money. I tried to sell. But it didn't sell me. Coinbase company doesn't sell when my money goes up, but sells when it goes down. I want my money. I will do whatever it takes, I will go to court if necessary.If anyone wants to move with me, let them write to me. Let's sue coinbase together.No one can see us as idiots. All the transactions I made on November 19, everything saved on my phone is visible

Stormin writes:

I bought 1.2million GYEN at about .0089 about 30 mins before they locked us up. 8 days later and all my funds are frozen. No answers, no excuses, no money at all. My portfolio shows a $0 value but the coin count is right. Complete scam!

ChaelXSheEther writes:

I was also taken for a 7k plus return, but instead they took my coins and left me broke.

Sanshuloiz writes:

I have several screenshots showing before and after they moved the decimal places in my Coinbase acoount on GYEN. It’s several millions worth.… they owe me quite a bit of money.

Annie writes:

I bought both gyen and powr. They froze my account so I couldn't sell the coins. I have screen shots, email confirmations and receipts of the original number of coins I bought and the price I paid. I have noticed coinbase have moved the decimal point on the number of coins I own. Because of this, it has made my investment in gyen worth approximately 25% per cent of the original value of my initial investment despite the coins value being higher now than what I paid. Powr they have moved the decimal point too . Surely! It is llegal to move a decimal point and reduce the amount of coins someone owns . Please let me know when this lawsuit is because there are many of us who have been effected by this. It makes me question trading on coinbase at all and their legitimacy. If this can happen with these coins what's to stop coin base doing it to others.

Patience writes:

You can start by calling lawyers and screenshot all the transactions. 646.762.7488

GYEN writes:

I brought GYEN last Friday at 12:17pm on Coinbase I invested $1,000.00 @ $0.0127 / GYEN and immediately it went up about $80.00 and around 6:16pm I check it out again it was $65,591.79 so immediately tried to sell it but wasn't able to. I tried to covert the crypto and wasn't able to do that. My account was was suspended by coins. I want my $65,591.79 Coinbase can't not get away with this one it to many people had the same issue after the Crypto went up 5 percent our Portfolio went up. So we should be paid out.

Coinbaserobbed writes:

I traded all my 1,600 and put on gyen as I seen the pump. My 1600 is worth 333 now and will remain. Coinbase let a stable coin become unstable. I don't even want the gyen now, I just want my money back! I'm not giving gyen or Coinbase a free 1300 for their mistake. And I bet money Coinbase is going to say sorry. and all of us just got robbed. So sign me up for the class action as well! I contacted them and as always they didn't reply to anything I said which then I knew it was just a automated reply. I'm sure the same one we all got. And I told them as well I don't even want the high price that day, I just want every single penny I put on gyen back. We went by the charts, well Coinbase your charts were wrong, your mistake not ours, just give us our original investment back! But maybe it is our mistake, we thought Coinbase was a legit company.

IrvingR72 writes:

I purchased 104k gyen with 40$ it went up to 907 dollars in value. I went to withdraw that amount and Coinbase restricted everyone from withdrawing and trading Gyen. I check my gyen today and I have 9.07 and 1040 gyen from an initial 40$ investment. They state it was a glitch but they use that excuse to steal 31$ from my initial investment of 40$. I wonder how many other people they stole from this way. 40$ May not be much but it is still money that was stolen by Coinbase knowing that they can get away with it. I wonder how much Coinbase siphoned from us in total. If there is a lawsuit against Coinbase I would like to be included. Everyone counts when it comes to this thievery.

212K writes:

Same sorry as 187K or pretty much everyone. My investment with Gyen soared to 212k, tried to sell/transfer it, but it was frozen and kept getting cancelled for three days. Please let me know when the class action law suit is, so we can get justice for this! They will definitely loose a lot of members because they will do the same to anyone on their platform, Robinhood 2.0!

Frustrated writes:

Play by play... - Coinbase lists 'stable'coin GYEN, which immediately proves it's clearly not pegged to anything. - Allows trading to continue, collecting exorbitant fees on trades for 'stable'coin that's clearly, massively inflated. - Exacerbates situation by issuing 10x, 100x, and 1000x the qty of tokens purchased by buyers, apparently due to a random internal issue with decimal placement. - Continues to collect fees on now further massively inflated trading. Price of GYEN peaks at $.07 - nearly (10x) the $.008 Yen. Many sellers sell for profit. - Coinbase suspends trading and cancels all orders without warning - those still holding watches helplessly as price tanks. - 72 hrs later, Coinbase sends demand letters to sellers of GYEN, threatening legal action if they don't return profits gained via Coinbase' own decimal mistake. - Offer nothing to buyers who paid them exponentially higher prices/fees for a massively inflated coin, and still keep them locked from their accounts.

Scammed writes:

To whom this may concern, I made a series of purchases ranging 100 to 500 dollars in total of $3700 of a newly listed crypto currency called GYEN. The first purchase I made was November 17th and made more that day and the day after. On November 19th I watched my investment of 3700 turn into 127,000 USD and any buyer or investor would sell and collect profits. I attempted to sell via the coinbase app and the app appeared to restrict access to selling/buying/trading almost immediately. Several minutes went by and soon I was forced out of the app and the newly listed crypto coin was removed from the coinbase platform altogether. Several hours later they notified affected people via twitter and they claimed they are working on a fix during this dilemma.. I attempted to transfer funds to another coinbase profile in which stated I was sending 20,501 USD but when my partner received the crypto it was a grand total of 496.02. I understand there are issues and problems but it's not myfault

BigGistheMan writes:

I forgot to add that GYEN was listed on Binance in May and it spiked up hard and brought in many traders who subsequently had their trading accounts frozen. How this ended up on Coinbase after that fiasco is criminal, like they new this would happen and be would be a quick payday for them. A chart going back to May will show this to be the truth. . If we cannot trust Coinbase the entire crypto industry may feel repercussions of from this travesty

BigGistheMan writes:

GYEN was listed with regular cryptos and did not say stablecoin like the others do. Coinbase crime was selling things not as advertised. Stablecoins are bought to hodl and use not to trade. GYEN was traded therefore no code to keep it at 1 to 1 like other stablecoins. 1 Yen to the dollar = 114 US 🇺🇸 So those fomoing in may have thought it was going to $114 If Coinbase and GYEN sold their own coins at the top then this was planned and they are in big big trouble as Coinbase is a publicly traded company now and doesn't just have to answer to traders but the SEC also

Gyen writes:

Coinbase isn't really buying and selling ethereum tokens according to their user over the real ethereum network but instead is doing fractional trading with their user base portfólio over the internet not on ethereum net. If a token value raises too much they can't pay cause they never had that token value in the first place, that is why they froze gyen. For those doing daily trade and using both coinbase and coinbase pro will know that what is Displayed is never accurate or fast on raise but extremely fast on refresh when it down trend, coinbase is charging for fees and gaz price of ethereum network without actually doing any transactions on that network, just move around portfólio of their current user base

Jakee writes:

Had 200k shares now just 3000 what a robbery they are I’ve already swapped over to gate absolute joke of a platform what I paid for I should keep error or not it’s what I paid for

Lynn writes:

On Friday coinbase froze my GYEN. The balance showed $4184.19 I tried to cashout, trade, put in wallet, vault deposit to my account. My account was frozen. Now on Monday Now, 21 it says my balance ia $41.84 cents. that is even lower than my purchase amount. How can they get away with this. !!!!!

Disenchanted writes:

I made the mistake of thinking Coinbase was a legitimate exchange. I had money invested in it, my account got froze like everyone elses, then was forced to sit and watch a tremendous real loss, not just a perceived loss. I also had money in Powerledger and it was frozen. I understand their issue, but when they froze our accounts, it took away the opportunity to minimize our real losses. That is not right.

CoinbaseFAIL writes:

This is completely ridiculous on Coinbase behalf. These funds need to be returned to your clients. Simply put, class action lawsuit.

Jeff writes:

New to cryptocurrency. Can someone please explain to me how a stable coin works. I was under the understanding that a stable coin was a safe place to park my money when I took it out of another cryptocurrency until I was ready to put it somewhere else. If that is so which i may be wrong, when I put 20k on gyen how could it go to 11k, looks like it was trading like any other coin ,and when the it hit the fan it tanked and I lost 9k in the deal. But when it was al said and done my gyen account said I had made 1.1 million when it shot up ,now they have put 11k back on my account. Either it is a stable coin and my 20k should be there or it is a tradeable coin which went 20x and I have a 1.1 million they can't play it both ways. Like I said I'm new at this and I my be totally wrong. Please correct me if I am. Thanks

Annie writes:

I bought both gyen and powr. Now I have noticed they have changed the amount of coins I own by moving the decimal point. Thus making my investment worth less than what I invested. How can this be when the coin value has gone up. I have screen shots of the number of coins I originally bought. This has been reduced dramatically by coinbase. Can they legally do this? I’d be willing to file a joint lawsuit.

Gyen writes:

Had 338,000 shares now only 3,300 shares I got robbed we don’t know the mistake and we shouldn’t have to lose shares because they were made. Give it back!

Jimmyr writes:

My 15 million coins went to 150k coins today. This is not right, it's not a bank they can ask us for the shares back but we own them. The whole basis of crypto currency not to be controlledlike a bank. Coinbase messed up and not paying their mistakes. Let me know when we lawsuit.

Reth writes:

When I try to convert my share to Bitcoin from gyen. The amount was 13,000. That's alot of money. Still got email and screen shot. If any law suit let me know. Been restricted since Friday just got in restricted. I can buy and sell now. But gyen is still frozen can't do anything with it. Not fair

489k writes:

This is ridiculous .. i bought $28000usd on Nov.17 and Coinbase froze .. now its showing 56M shares instead of 560k shares yet balance showing $489k on Gyen side but same time $4900 on Coinsbase total balance. Nothing is right with this .. you can't transfer when it was higher nor sell to take losses nor covert .. only flow i seen is just taking hits each single day and still on. We should all join CLASS ACTION LAWSUIT their problem is not our problem nor should result to our losses, they make lots of money from us anyway!

Burunch writes:

Thanks gosh for someone finally commenting on this, it’s insane that my whole account is locked and Coinbase isn’t even giving solid updates.

187k writes:

My investment w gyen soared to187k then I sold it. But sale was cancelled. Coinbase is the only entity at fault. Zero Due diligence on their part . No good faith attempt to fix this and no care for fiduciary duty . These guys are public and this is going to get real nasty

Flyasain writes:

When that happen my account show 13,000. I try to cash out but they won't let me. I try to convert which I still got the email but they denied me. It's not my fault that ya made the mistake. That's what stock is. U need to catch it when it's high and sell.my account was frozen until this morning. I can buy and sell now. I just can't do anything with gyen. They are holding my money hostage. Not fair....

70klost writes:

This needs all the attention it can get, scambase has to pay up

Kilo writes:

If you read the white pages very clearly it says they will pay you 1:1 for your gyen no matter what and their building this whole thing Starting with trust. If they want us to trust them they better pay us the dollar on every gyen

BD3 writes:

Thank you for reporting this. Why is this not all over the news? Please investigate and write more on this!

46millionGYEN writes:

I own over 46 million shares of GYEN which were purchased for fractions of a penny so my investment is nominal. But for no reason or explanation my cash is frozen in limbo. The most reputable Crypto exchange service will not allow me to access my money. I am not able to sell the GYEN coins. Nor am I able to transfer to Coinbase wallet as I was instructed to do so. Ialso have digital records of my account balances and attempted transactions. My profits for this transaction were just over six figure$ at one point. I made multiple attempts to sell and/or trade my profits to other crypto currency’s as well as to my neutral USD account. All attempts were denied. I have multiple emails stating the rejection of the transaction. All attempts to acquire an answer have been assessed with the same response.”We are working to correct a technical issue.” That’s fine. “technical issue's” happen, but there is no need to freezemycash ROBINHOOD #2????? Steal from me and give to you?

Lawyerup writes:

We should start a class action! I purchased from coinbase 1k of gyen, worth much more now but can't trade it, all is frozen. I have approximately 10k of other crypto held on coinbase and now am frightened it can be frozen. Wish I could trade it all for gold :( coinbase has not sent any info to gyen holders seems illegal 😕

RandyQuaid1985 writes:

Thank you for reporting this. I was on the other side and was able to get my money out plus the 20x GYEN. Coinbase is not doing the right thing and I think they are too embarrassed to admit their failure. My account is frozen and I don't care because I am about to board my new yacht

Praetor writes:

I bought gyen at pegged (yen) value on November 19, and they immediately delisted the coin. Then they ‘temporarily restricted’ my account so that I could not make any trades at all on ANY asset. When I called in on November 20, they said they had no idea when this would clear up. I have 20 grand in my portfolio (only 1000$ in gyen). What gives COINBASE the right to steal my money?

Santafea writes:

I sincerely thank you Samuel Alioto for being the first reporter to break this story. Coinbase listed this coin for 3 days before delisting and freezing all holders assets as account restricted Currently no holder can buy sell or transfer. this was a stable coin? that broke untethered and went all the way to .06 cents. Coinbase, the most trusted, publicly traded US crypto exchange negligently listed it. The same occurred on 5/12 with GYEN on Binance, and they quickly delisted- but Coinbase chose to list anyway. It's understood crypto has risks- and yes many read the white paper and researched before buying. It appeared the coin untethered and was moving on pure free market. Come to find out that none of the information published on Coinbase was true- coin amounts, market cap, circulation, or price. In fact the transaction history reports are now false and the charts have been changed to reflect a different story. Coinbase needs to reimburse any transaction resulting in loss.

 
 
 

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