JPYC Glitch Causes Stablecoin Price Spikes on Upbit

JPYC Inc., the issuer of Japan's yen-pegged stablecoin, halted Ethereum and Polygon issuance reservations on September 17 due to a glitch in its minting process.

The timing couldn't have been worse as South Korean exchange Upbit began listing JPYC the same day, causing a surge in demand and frozen supply. As a result, secondary market prices for JPYC skyrocketed to approximately 3 JPY from its intended peg of 1 JPY.

JPYC initially paused issuance reservations on Ethereum before extending the freeze to Polygon, indicating that the problem was not isolated to a single chain deployment.