You may have heard of the recent incident on Coinbase. There was a glitch on the issue of the stablecoin $GYEN. It has been 2 days since my account was restricted due to their error program glitch. Many people are making 10x of money within 24 hours then their funds are either forced to sell or entirely restricted on account usage. What just happened to make Coinbase restrict all accounts involved in trading of $GYEN?
What is $GYEN
It is a stablecoin peg from the Japanese yen. It is supposed to be stable at Japanese yen value similar to stablecoin to US dollar.
Price glitch
The coin price started at $0.008 when Coinbase was released and it went up to $0.03 or triple the price. Many users who bought $GYEN received instant profits within 24 hours and some cash out immediately.
Coinbase Pro
Pro traders are even more profitable. Some use large money to pump the market up and turn their profits to 100x and make a million out of the glitch. Smart traders immediately cash out.
Another Robinhood incident
When Robinhood had its app glitch, people made millions through their glitch code. Coinbase had a similar experience and they might have lost more than millions of dollars.
Shutdown purchasing power
Users who traded $GYEN now restricted their services on trading all cryptocurrencies. Coinbase error was again paid by users’ expenses.
Future of crypto services
I kept wondering why such incidents happen and why such a platform exercises its centralized power to prohibit users from doing something that the platform mistakenly made. We need a decentralized service that users take control of. We need features that work for decentralized users without being punished for server errors.
In conclusion
This incident will cost Coinbase millions of dollars. However, it will cost consumers confidence once again and push users away from their services.
Photo by Joshua Sukoff on Unsplash
Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.
Resources
https://twitter.com/coinbasepro/status/1462226811983577089?s=21
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