A lawsuit has been filed against coin base for manipulating the investors in favour of GYEN and for not being able to justify it as a stable coin. The lawsuit stated that, both Coinbase and GMO-Z.com knew the type of token GYEN was and even then, chose to misguide the market. As the investors were manipulated, they bared huge losses in the crypto market. Also, according to the lawsuit, GYEN token was created to be backed by Japanese Yen on a one-to-one basis. As soon as, Coinbase listed it as GYEN as its token, it lost the peg value. It was also informed that investors purchased the coin knowing that it was pegged to Yen. However, after acquiring the token, they found out that its value was more than Yen. FTX Foundation Employee in Legal Battle for Unpaid $275K Bonus Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
The issue occurred in mid-November when Coinbase customers were able to buy GYEN, a stablecoin that is pegged to the value of one Japanese yen. Also involved in the mishap was POWR, a cryptocurrency designed to be used in energy trading. Additional Products GYN public exchange listing will be available Q4 2023. For more information, click here.