A new report posted by Bloomberg reveals cryptobros are taking Coinbase to court for its role in promoting and trading the “stablecoin” GYEN. GYEN is a stablecoin running on Ethereum that’s intended to maintain a value of one Japanese Yen.
Outraged customers of Coinbase say the company has locked them out of their accounts after “technical reasons” forced it to halt trading GYEN. Reminds me of the Ripple (XRP) I’m still holding.
According to the complaint, “investors placed orders believing the coin’s value was, as advertised, equal to the yen,” but noted the tokens they were purchasing “were worth up to seven times more than the yen.”
They added that just as suddenly as their purchases were made, “the GYEN’s value plunged back to the peg — falling 80 percent in one day.”
The lawsuit was published merely a day after Coinbase (COIN) shares and bonds plummeted to trade at $44.35, giving investors ample reason to be skeptical about a crypto exchange while markets remain volatile.
The complaint goes on to state Coinbase never disclosed “GYEN was not designed to hold a value pegged to the yen” and that Coinbase blocked users from selling off GYEN as its value tanked.
Due to the new restriction implemented by Coinbase, hundreds of users lost quite a bit of money, most notably some users lost hundreds of thousands of dollars in hours. The users allege this caused them “grief, anxiety, stress, and outrage.”
Stablecoins such as Dai and Tether were designed to be only as volatile as the US dollar, and have values that typically change much less than those of Bitcoin and Ethereum.
Who knows what the future of crypto is while the market seems to have recovered a little bit. There is speculation that this is just the “dead cat bounce” before the real crash.
What do you think? Is the latest crash a sign of an even bigger future crash? Sound off in the comments!
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