JPYC Price Surges Fourfold on Upbit Listing Day
JPYC, a stablecoin pegged to the Japanese yen, briefly traded at more than four times its value on its first day of listing on Upbit. The price spike was driven by buy orders and arbitrage demand amid thin early supply.
The Ethereum network was initially the only supported network for JPYC deposits, holding a relatively small share of total circulating supply. This decision contributed to the surge in prices, with JPYC trading at an intraday high of 37.60 won before falling back to near its 1-yen peg.
As of Thursday afternoon, JPYC was trading at 8.64 won. Trading activity cooled quickly, with daily volume shrinking from roughly 285.9 billion won on the first day to less than a tenth of that amount over the next 24 hours.
Kazuaki Mizuchi, an outside director at JPYC, noted the possibility of arbitrage opportunities but cautioned that individuals who profited from the price surge were required to file tax returns, even if their gains were below the threshold for salaried workers.