GYEN has surged in trading as it got exposure to a major crypto exchange – with some wondering if these types of gains will continue in the future.
In the past 24 hours, GYEN has skyrocketed by 247% to $0.0369, according to Coinbase.
Furthermore, the cryptocurrency has climbed 257% and 322% in the past week and month respectively.
The big gains from GYEN come as Coinbase has allowed its pro members to start adding the token to its accounts.
But before you look further – make sure you understand the risks.
For one, know that there is extreme volatility in the industry. And although bullish trends can happen – you could lose a lot of money quickly if you’re not careful.
And know that GYEN is a newer cryptocurrency, whose coin just launched in March.
This means GYEN is much riskier when compared with larger and more established cryptocurrencies like Bitcoin.
Plus, the crypto space in general can come with a fair share of complexity. In other words, make sure you understand what you’re investing in before buying.
What is GYEN?
When GYEN launched in March, the cryptocurrency claimed it was the “world’s first” regulated JPY-pegged stablecoin.
Firstly, a stablecoin aims to, as its name suggests, sit at a “stable” price that’s fixed through an asset including a commodity or a currency.
In the case of GYEN, its currency is the Japanese yen (JPY).
According to GYEN, it is backed by an underlying fiat currency with a 1:1 reserve. This type of reserve is said to be frequently audited in an effort to avoid price volatility.
The stablecoin, which runs on Ethereum’s blockchain, balances decentralized technology with payments systems and traditional finance.
Marie Tatibouet, chief marketing officer of crypto exchange Gate.io, told The Sun that every token is issued by GMO Trust, which is regulated by New York State Department of Financial Services.
She said: “Every token is backed by a reserve balance in their trustee bank account,” she said.
“Plus, the company regularly provides month-end balance audit reports.”
As stated before, the price of GYEN has jumped thanks to becoming available to Coinbase pro members.
Where the price will wind up in the future is tough to predict – and it is yet to be included on other major exchanges like Robinhood.
But Mrs Tatibouet notes that stablecoins aren’t exactly supposed to surge in trading like this.
“It looks like the demand is so high that the peg has failed to hold,” she said.
“A good stablecoin shouldn’t surge or fail under scrutiny.”
And price predictions are all over the place currently.
For instance, Wallet Investor expects the price of GYEN to add another zero and fall to $0.00845 in a year’s time.
Meanwhile, Digitalcoin expects GYEN to gain to around $0.022 in 2021.
Furthermore, Goldman Sachs expert Andrew Lokenauth is even more bullish on GYEN.
“From my prior experience, I feel it will be included on other exchanges due to demand,” he told The Sun.
“Also, due to current hype and mentions of GYEN on reddit and twitter, this can easily reach 10 cents.”
But keep in mind, price predictions could change should more bullish or bearish trends come GYEN’s way.
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