I've been digging into the GWEN/POWR Coinbase situation. It seems a glitch caused Coinbase to issue/sell millions (possibly Billions) of coins they don't actually have. They froze every holder's account, and now are desperately trying to fix every transaction. It appears they're deep in the hole.

Admitted crypto skeptic and /r/Buttcoin -er here. I've been monitoring the issue with Coinbase GYEN/POWR situation you probably caught wind of, and I figured people here could appreciate some objective news without calling it FUD. What happened? On 11/15 & 11/16, Coinbase issued 2 new coin trading pairs, GYEN/USD and POWR/USD. What is GYEN? GYEN was supposed to be a "regulated" stablecoin , pegged to the Japanese Yen. As a stablecoin, the price should never really gone above $0.0087 (the conversion rate from a Yen to USD) But as soon as they listed the coin, people started actively trading it (because of course people try to trade a stablecoin). For whatever reason the "stablecoin"'s stability function did not work correctly, causing the price to immediately skyrocket. Of course, this caused more people to swarm in and buy up GYEN, shooting it up 10x, before immediately crashing. Then the bigger screw up. At some point, it seems that a technical glitch caused COINBASE to put a 100x-1000x multiplier on the total amount of GYEN in many users wallets. np.reddit.com/r/CoinBase/comments/qzkffi/comment/hlnaw7i/ . This user reported he paid $50, and was given 50 Million GYEN, rather than the 5000 he shouldve had. Many other users in /r/GYEN and Twitter are reporting similar situation. On 11/19, Coinbase mysteriously locked out all user accounts who held any POWR or GYEN. They also manually cancelled every pending order. Since then, the user accounts have remained locked, and Coinbase has given no real update... other than tweeting "To Th3 Moon" on the main Twitter account, and "There was a technical glitch, we're working on it" on Coinbase PRO Twitter. What appears to be happening now is Coinbase is going through trying to manually correct every account to adjust the 100x error. Thing is, it seems some users may have sold or moved their coins before the error was fixed. At this point (presumably) thousands of users are stilled locked out of trading and super pissed off, and Coinbase isn't giving really any info. If the above scenario panned out, Coinbase could be on the hook for tens (or hundreds) of millions of over-alloted coins. As maybe some evidence of the scale, if you look at the CMC volume chart for GYEN, it shows just a few million $ in trade volume on those days. But if you look at the Tradingview chart for Coinbase GYEN/USD pair, it shows Billions in GYEN trade volume (Tens of millions of $USD) Interestingly, user /u/swag-er warned and predicted this exact situation would happen a day before, as pretty much the exact same thing happened on Binance 6 months ago when they listed GYEN. np.reddit.com/r/CryptoCurrency/comments/qvpvvy/gyen_is_a_stablecoin_dont_get_finessed/ Unfortunately, the top posts of this sub were filled with crap about memecoins mooning and El Salvador doing sketchy stuff with Bitfinex, so his post wasn't seen by many. As far as POWR, I have no idea on that one. I'm assuming they were also affected by the x100 bonus coin glitch or it was frozen as a precaution. Tl;dr - Coinbase screwed up big time. Now they're deep in the hole and desperately trying to dig themselves out. Anyway, thats your buttcoin news of the day. submitted by /u/DontMicrowaveCats [link] [comments]

Admitted crypto skeptic and /r/Buttcoin -er here. I've been monitoring the issue with Coinbase GYEN/POWR situation you probably caught wind of, and I figured people here could appreciate some objective news without calling it FUD.

What happened?

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

What is GYEN? GYEN was supposed to be a "regulated" stablecoin , pegged to the Japanese Yen. As a stablecoin, the price should never really gone above $0.0087 (the conversion rate from a Yen to USD)

But as soon as they listed the coin, people started actively trading it (because of course people try to trade a stablecoin). For whatever reason the "stablecoin"'s stability function did not work correctly, causing the price to immediately skyrocket. Of course, this caused more people to swarm in and buy up GYEN, shooting it up 10x, before immediately crashing.

Then the bigger screw up. At some point, it seems that a technical glitch caused COINBASE to put a 100x-1000x multiplier on the total amount of GYEN in many users wallets. np.reddit.com/r/CoinBase/comments/qzkffi/comment/hlnaw7i/ . This user reported he paid $50, and was given 50 Million GYEN, rather than the 5000 he shouldve had. Many other users in /r/GYEN and Twitter are reporting similar situation.

On 11/19, Coinbase mysteriously locked out all user accounts who held any POWR or GYEN. They also manually cancelled every pending order. Since then, the user accounts have remained locked, and Coinbase has given no real update... other than tweeting "To Th3 Moon" on the main Twitter account, and "There was a technical glitch, we're working on it" on Coinbase PRO Twitter.

What appears to be happening now is Coinbase is going through trying to manually correct every account to adjust the 100x error. Thing is, it seems some users may have sold or moved their coins before the error was fixed.

At this point (presumably) thousands of users are stilled locked out of trading and super pissed off, and Coinbase isn't giving really any info. If the above scenario panned out, Coinbase could be on the hook for tens (or hundreds) of millions of over-alloted coins.

As maybe some evidence of the scale, if you look at the CMC volume chart for GYEN, it shows just a few million $ in trade volume on those days. But if you look at the Tradingview chart for Coinbase GYEN/USD pair, it shows Billions in GYEN trade volume (Tens of millions of $USD)

Interestingly, user /u/swag-er warned and predicted this exact situation would happen a day before, as pretty much the exact same thing happened on Binance 6 months ago when they listed GYEN. np.reddit.com/r/CryptoCurrency/comments/qvpvvy/gyen_is_a_stablecoin_dont_get_finessed/

Unfortunately, the top posts of this sub were filled with crap about memecoins mooning and El Salvador doing sketchy stuff with Bitfinex, so his post wasn't seen by many.

As far as POWR, I have no idea on that one. I'm assuming they were also affected by the x100 bonus coin glitch or it was frozen as a precaution.

Tl;dr - Coinbase screwed up big time. Now they're deep in the hole and desperately trying to dig themselves out.

Anyway, thats your buttcoin news of the day.

submitted by /u/DontMicrowaveCats
[link] [comments]