GYEN

A yen-pegged stablecoin is a rare thing, and GYEN's troubled run shows why they are hard to keep stable. Issued by GMO-Z.com Trust under a New York trust charter, it was meant to track one Japanese yen. Instead it became a cautionary tale: when Coinbase listed it in November 2021, thin supply sent the price spiraling to many times its peg before crashing roughly 80 percent in a single day, trapping buyers who had paid far above a yen. GMO kept redeeming at one yen for verified customers, but the exchange price had detached entirely, and a class action followed that the company settled for 6.75 million dollars. The token has since been wound down and is no longer maintained as a live product. It stands as a reminder that a trust charter does not guarantee an orderly market.