JPYC stablecoin sees extreme volatility on Upbit debut

JPYC, a stablecoin pegged 1:1 to the Japanese yen, experienced extreme price volatility following its debut on the Upbit exchange in South Korea on October 17. The asset's price surged from an initial 12 won to a peak of 37.6 won within approximately six hours, before plummeting to the 9-won range by the following morning.

Analysts attribute the volatility to restricted liquidity during the initial listing phase. At the start, Upbit only supported deposits via the Ethereum network, limiting the influx of external supply. Once the exchange expanded support to include the Kaia and Polygon networks at 7:23 PM on October 17, the anticipated influx of external JPYC holdings triggered significant selling pressure. Between 7:23 PM and 7:25 PM, sell-driven trades accounted for approximately 65.5% of the total transaction volume.

Noritaka Okabe, representative of JPYC, described the rapid price fluctuations as unusual for a stablecoin. He noted that it was difficult to determine whether the surge was caused by buying bot errors or movements to secure initial liquidity, though he expressed optimism regarding the long-term growth potential following the Upbit listing.