Admitted crypto skeptic and /r/Buttcoin -er right here. I've been monitoring the problem with Coinbase GYEN/POWR scenario you in all probability caught wind of, and I figured individuals right here may respect some goal information with out calling it FUD.
On 11/15 & 11/16, Coinbase issued 2 new coin buying and selling pairs, GYEN/USD and POWR/USD.
What is GYEN? GYEN was presupposed to be a "regulated" stablecoin , pegged to the Japanese Yen. As a stablecoin, the value ought to by no means actually gone above $0.0087 (the conversion charge from a Yen to USD)
But as quickly as they listed the coin, individuals began actively buying and selling it (due to course individuals would attempt to pump a stablecoin). For no matter purpose the "stablecoin"'s stability perform didn’t work appropriately, inflicting the value to instantly skyrocket. Of course, this brought on extra individuals to swarm in and purchase up GYEN, capturing it up 10x, earlier than instantly crashing.
Then the larger screw up. At some level, evidently a technical glitch brought on COINBASE to place a 100x-1000x multiplier on the whole quantity of GYEN in lots of customers wallets. np.reddit.com/r/CoinBase/comments/qzkffi/comment/hlnaw7i/ . This person reported he paid $50, and was given 50 Million GYEN, quite than the 5000 he shouldve had. Many different customers in /r/GYEN and Twitter are reporting related scenario.
On 11/19, Coinbase mysteriously locked out all person accounts who held any POWR or GYEN. They additionally manually cancelled each pending order. Since then, the person accounts have remained locked, and Coinbase has given no actual replace… apart from tweeting "To Th3 Moon" on the principle Twitter account, and "There was a technical glitch, we're working on it" on Coinbase PRO Twitter.
What seems to be taking place now could be Coinbase goes via attempting to manually right each account to regulate the 100x error. Thing is, it appears some customers might have bought or moved their cash earlier than the error was mounted.
At this level (presumably) 1000’s of customers are nonetheless locked out of buying and selling and tremendous pissed off, and Coinbase isn't giving actually any information. If the above situation panned out, Coinbase may very well be on the hook for tens (or a whole bunch) of thousands and thousands of over-alloted cash.
My guess is they may quietly repair it, eat any losses, and customers can be SOOL on the dip
As perhaps some proof of the size, for those who have a look at the CMC quantity chart for GYEN, it exhibits just some million $ in commerce quantity on these days. But for those who have a look at the Tradingview chart for Coinbase GYEN/USD pair, it exhibits Billions in GYEN commerce quantity (Tens of thousands and thousands of $USD)
Interestingly, person /u/swag-er warned and predicted this actual scenario would occur a day earlier than, as just about the very same factor occurred on Binance 6 months in the past after they listed GYEN. np.reddit.com/r/CryptoCurrency/comments/qvpvvy/gyen_is_a_stablecoin_dont_get_finessed/
Unfortunately, the highest posts of this sub had been full of crap about memecoins mooning and El Salvador doing sketchy stuff with Bitfinex, so his publish wasn't seen by many.
As far as POWR, I do not know on that one. I'm assuming they had been additionally affected by the x100 bonus coin glitch or it was frozen as a precaution.
Tl;dr – Coinbase screwed up massive time. Now they're deep within the gap and desperately attempting to dig themselves out.
Anyway, thats your buttcoin information of the day.
**EDIT** Update: Seems they're lastly letting individuals withdraw their cash, however nonetheless no buying and selling allowed. https://status.pro.coinbase.com/