The $GYEN glitch at Coinbase – possible Coinbase GYEN lawsuit?

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$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:

customers’ funds got frozen:

Some customers that actually bought GYEN at the moment of the glitch had their new purchase reduced 100x:

All in all there are many such casesreported on Twitter.

What’s next?

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if a bank account gets a deposit by mistake, the account holder needs to return it by law, even if the funds are withdrawn.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.

 

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.

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:

Lawsuit against coinbase! from Gyen

https://www.facebook.com/groups/956606001906638/?ref=share

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.

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