May 15, 2022 09:01
Cryptocurrency exchange Coinbase was chastised for promoting and facilitating the trade of the GYEN stablecoin, which turned out to be a failure. GYEN is a cryptocurrency that was created on the Ethereum network to match the value of the Japanese yen.
"Donovan," a representative of "hundreds of users" of the platform in the case, filed the claim in the Federal Court of North Carolina, United States.
In addition to the exchange, the lawsuit also names GMO-Z.com as the issuing business of the GYEN token. These two entities are accused of giving investors inaccurate information about the cryptocurrency's reliability when Coinbase launched it for exchange and released a guide outlining its key features.
According to the lawsuit, investors would have purchased the GYEN tokens believing that each one was worth one yen, but their value was "inflated."
The token's value sank by more than 80% in a single day.
According to CoinMarketCap statistics, GYEN is now trading at $0.0077, while the correct price is $0.77 USD per yen at the time of writing, that is 10X lower than intended.
GMO-Z also has another stablecoin, ZUSD (ZUSD), that is pegged to the value of the US dollar but has found a way to keep its peg to the currency.
The lawsuit currently awaits review, filed in the US District Court, Northern District of California (San Francisco).
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Author: Justin Derbek
New York News Desk
Global Crypto Press Association / Breaking Crypto News
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