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Stable currency of the Japanese yen, why the price fluctuates?Expert commentary in 10 minutes

Cryptocurrency

Why are stable coins volatile?Explain the reason

The stable coin “GYEN”, which is pegged to the Japanese yen, which was listed for the first time by the major cryptocurrency exchange Binance, attracted a lot of attention.

GYEN is the world’s first New York State Department of Financial Services (NYDFS) issued by GMO-Z.com Trust Company, Inc. (GMO Trust), a consolidated company of GMO Internet Co., Ltd., which develops a virtual currency exchange business in Japan. Stable coin linked to Japanese yen approved by. The start of Japanese Yen-denominated transactions is expected to improve the convenience of users who want to trade Japanese Yen-denominated transactions in the global market, in addition to the advantages of remittance speed and low fees.

On the other hand, as of 13th, one day after the start of trading, GYEN’s trading has been suspended on Binance.

The reason is that the price of stable coin, a virtual currency designed to achieve stable prices, has fluctuated significantly. In yen-based stable coin transactions designed to be 1 yen, contracts are made at a price of over 100 yen at one time. After that, the price fluctuated.

Why does the price of stable coins fluctuate in this “CONNECTV News 10-minute commentary” delivered with CoinPost and a new economy? We released a video explaining in 10 minutes to Mr. Noritaka Okabe, President of Japan Cryptocurrency Market Co., Ltd., which issues Japanese Yen-linked stable coin JPYC, which is treated as a prepaid payment method.

Why did the price fluctuate even though it was a stable coin? I will approach the reason.

Click here for video: 10 minutes commentary

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“#CONNECTV” is a YouTube channel “#CONNECT” that explains the hot news of the virtual currency / blockchain industry and the contents that can be learned for beginners by two companies, the virtual currency (cryptographic asset) media CoinPost and Gentosha “New Economy”. .. We deliver daily videos that explain topics that you do not understand in the article.

We plan to deliver useful information that is possible only with major domestic virtual currencies and blockchain media. In the future, we aim to create a “place” where key persons from various business genres in Japan and overseas can collaborate with key persons in the virtual currency / blockchain industry.

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Author: S.Ninomiya

Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”

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