I’ve been digging into the GWEN/POWR Coinbase scenario. It appears a glitch precipitated Coinbase to difficulty/promote hundreds of thousands (presumably Billions) of cash they do not even have. They froze each holder’s account, and now are desperately making an attempt to repair each transaction. It seems they’re deep within the gap.

Admitted crypto skeptic and /r/Buttcoin -er right here. I've been monitoring the difficulty with Coinbase GYEN/POWR scenario you in all probability caught wind of, and I figured individuals right here might respect some goal information with out calling it FUD.

What occurred?

On 11/15 & 11/16, Coinbase issued 2 new coin buying and selling pairs, GYEN/USD and POWR/USD.

What is GYEN? GYEN was alleged to be a "regulated" stablecoin , pegged to the Japanese Yen. As a stablecoin, the worth ought to by no means actually gone above $0.0087 (the conversion fee 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 worth to instantly skyrocket. Of course, this precipitated 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, it appears that evidently a technical glitch precipitated COINBASE to place a 100x-1000x multiplier on the overall quantity of GYEN in lots of customers wallets. np.reddit.com/r/CoinBase/comments/qzkffi/comment/hlnaw7i/ . This consumer reported he paid $50, and was given 50 Million GYEN, slightly than the 5000 he shouldve had. Many different customers in /r/GYEN and Twitter are reporting comparable scenario.

On 11/19, Coinbase mysteriously locked out all consumer accounts who held any POWR or GYEN. They additionally manually cancelled each pending order. Since then, the consumer accounts have remained locked, and Coinbase has given no actual replace… apart from tweeting "To Th3 Moon" on the primary Twitter account, and "There was a technical glitch, we're working on it" on Coinbase PRO Twitter.

What seems to be taking place now’s Coinbase goes by making an attempt to manually right each account to regulate the 100x error. Thing is, it appears some customers could 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 data. If the above situation panned out, Coinbase might be on the hook for tens (or a whole lot) of hundreds of thousands of over-alloted cash.

My guess is they are going to quietly repair it, eat any losses, and customers will probably 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 hundreds of thousands of $USD)

Interestingly, consumer /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 once they listed GYEN. np.reddit.com/r/CryptoCurrency/comments/qvpvvy/gyen_is_a_stablecoin_dont_get_finessed/

Unfortunately, the highest posts of this sub have been stuffed with 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 don’t know on that one. I'm assuming they have 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 making an attempt 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/

submitted by /u/DontMicrowaveCats
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