JPYC Jumps to 37.6 Won After Korean Listing, Then Slumps 76% to 8-Won Range
Summary
- JPYC jumped to 37.6 won immediately after listing on a domestic won market, then plunged to the 8-won range a day later.
- With circulating supply limited in the early stage of the listing, buying demand drove the domestic price far above its reference value.
- Limited circulating supply, restricted redemption and transfer routes, and a shortage of domestic market makers have been cited as factors that prevented the price gap from closing quickly.
Forecast Trend Report by Period
Yen-based stablecoin JPYC surged to more than three times its reference value immediately after listing on a South Korean won market, only to fall to the 8-won range a day later.
Dailyian reported on September 19 that JPYC rose to 37.6 won shortly after trading began on a domestic won market on September 17, before dropping to the 8-won range the following morning. It was trading at 8.64 won as of September 19.
JPYC is a crypto-based stablecoin that aims to be redeemable at 1 yen per token. With initial circulating supply limited, buying demand pushed the domestic price well above its reference value.
At the start of trading, JPYC deposits and withdrawals were available only on Ethereum. Kaia and Polygon were added later. Around the same time, issuance reservations on some networks were temporarily suspended during the JPYC issuance process.
Limited circulating supply, restricted redemption and transfer routes, and a lack of domestic market makers have been cited as reasons the price gap was not quickly arbitraged away.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.