Top US cryptocurrency exchange Coinbase has reportedly been hit by a lawsuit to offer trading for the GYEN, a currency meant to function as a stable currency linked to the Japanese yen.
According to a complaint seen by Bloomberg, Coinbase is accused of misleading customers into believing that the GYEN was equal to the price of one yen.
Following overwhelming buying pressure, the GYEN lost its bond to the yen as it rose from $ 0.008 on November 13 to $ 0.04 on November 18, before falling sharply to parity on November 24.
According to Bloomberg, some investors at Coinbase did not understand that the token did not trade like the yen and was designed to fall drastically to reach its stick.
The complaint states, among other things.
“Investors placed orders that thought the value of the coin, as advertised, was equal to the yen, but the tokens they bought were worth up to seven times more than the yen … Just as suddenly, the GYEN value plunged back to the link ̵[ads1]1; falling 80% in one day. “
Coinbase also froze trading in the midst of volatility, preventing GYEN holders from selling their coins, leading to losses of “countless millions in a matter of hours,” according to the complaint.
Says a group of GYEN investors leading the lawsuit,
“[Due to] the omission of the fact that the GYEN was not designed to hold a value linked to the yen, and Coinbase’s restriction prohibiting investors from liquidating their GYEN while it fell, hundreds of buyers lost huge sums, some lost hundreds of thousands of dollars in just hours, them grief, anxiety, stress and resentment. “
On November 19, the Coinbase cryptocurrency exchange said stopped activities involving GYEN and Power Ledger (POWR) due to technical reasons.
Check price action
Do not miss a beat – Subscribe to have crypto email alerts delivered directly to your inbox
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed by The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock / Tithi Luadthong