$GYEN is an Ethereum-based stablecoin that is pegged to the value of 1 Japanese Yen.
On November 17-19 Coinbase users have reported their GYEN holdings increasing 100x – which appears to be some sort of an exchange-based glitch (allegedly).
Some users immediately started selling GYEN to take profits, which brought the price of the token down drastically.
After that, total chaos ensued:
transactions got cancelled:
Help!! Almost made $55K today and coinbase canceled my transaction. Now it's worth $550 and I can't even trade GYEN on the platform! What's the hell is going on #Coinbase? #GYEN#cryptocurrecy#cryptopic.twitter.com/YAe0AGOwui
— Normz (@normz04) November 19, 2021
customers’ funds got frozen:
I'll be reporting/filing complaints about @Coinbase to the SEC and BBB if my funds are not unlocked and returned today. They block all means of effective communication, so I have to blast it here. #Coinbase#GYEN#Crypto
— NiceSky (@NiceSky_Prod) November 20, 2021
Some customers that actually bought GYEN at the moment of the glitch had their new purchase reduced 100x:
Can someone look what they did here and tell me how I should get help? I bought 63,000.00 gyen and I swear Coinbase stole it. And left me with 639.00! What do I do? I never tried to sell any like everyone. Where did it go? pic.twitter.com/FPUjljMHm9
— CLEvsDaWurld *dawg pound* (@CLEvsDaWurld) November 24, 2021
All in all there are many such casesreported on Twitter.
Normally, if a bank account gets a deposit by mistake, the account holder needs to return it by law, even if the funds are withdrawn.
The problem arises with users who cashed out their glitch-GYEN and transferred it into other cryptocurrencies that have already changed their value as well.
Another issue is that anyone who bought into GYEN at the moment of the glitch was entering a contract to buy 100x more worth of GYEN tokens, and got their purhcase value reduced, so it might seem that Coinbase themselves need to reimburse for that.
If @coinbase@CoinbasePro doesn’t refund money to those who lost in $gyen,those who cashed out the glitch shouldn’t pay them back.Bitch I lost mere thousand but I will come after you, in court. If you extort folks for refund what they cashed, you losing big time. Mark it. #gyen
— • (@Dylanian1) November 24, 2021
All in all this looks like a costly mistake that could potentially end up in a class action lawsuit against Coinbase. The GYEN/Coinbase glitch is costing Coinbase publicity and users.
A lot of customers are already planning their exodus to other large centralized exchanges like Crypto.com – and many are even planning Coinbase GYEN lawsuit.
#GYEN#Coinbase Well, I just opened an account with https://t.co/odraaUx9wI. Don't invest with Coinbase. Tell everyone you know not to invest with Coinbase. Not if you don't want this to happen to your money. #cancelcoinbasepic.twitter.com/NYZMhgQouS
— Joseph Hartley (@JosephH06678271) November 25, 2021
We’ll be watching the story – follow us on Twitter.
Updates on the possible Coinbase – GYEN lawsuit:
Some users affected by the GYEN glitch are gathering in hopes to get a lawsuit going:
Both of these groups are organizing people for a Coinbase-GYEN lawsuit, so if you have been affected you can get in touch with them.