A newly listed stablecoin has experienced an unusual surge, skyrocketing over 190% as its price diverged significantly from global rates on domestic exchanges.
According to the cryptocurrency industry, as of 6:42 PM on September 17, the JPYC (Japanese Yen Pei Coin) was trading at 35.7 won on Upbit, marking a 197.5% increase from its listing price. At the same time, cryptocurrency analytics firm CoinMarketCap reported the JPYC price at 9.65 won, indicating that Upbit's price was more than three times higher than the global market.
Upbit began trading support for the dollar stablecoin PayPal USD (PYUSD) at noon on the same day, followed by the launch of JPYC trading at 6 PM.
PYUSD also saw significant price fluctuations immediately after its listing. Starting at around 1,380 won, the price surged to 1,760 won by 6:20 PM before dropping back to the 1,380 won range.
Stablecoins are designed to be pegged to the value of fiat currencies like the dollar or yen, or specific assets, with the aim of reducing price volatility. Therefore, such a dramatic price increase immediately after listing is considered unusual.
There have been previous instances of rapid price movements for stablecoins on domestic exchanges. For example, the euro stablecoin EURC, which was listed on Bithumb on August 28, started trading at 1,583 won on September 14 and briefly soared to 7,860 won.
On the same day, Upbit also listed EURC, where the price spiked to 3,300 won on September 13, showing a significant discrepancy from global rates.
Industry experts suggest that these phenomena are likely temporary price distortions caused by concentrated buying activity on domestic exchanges immediately after new listings, rather than fluctuations in the inherent value of stablecoins. They note that during the initial listing phase, insufficient trading volume can lead to significant price movements from just a few buy orders.
* This article has been translated by AI.
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