Scammers may continue to cash in on the PayPal stablecoin launch for as long as possible.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
2 mins read
Bad actors have attempted to take advantage of PayPal‘s launch of its native stablecoin – PYUSD. The launch, which took place barely 24 hours ago, now has competition from several fake tokens sporting the “PYUSD” ticker.
According to data from the decentralized exchange tracker DexScreener, there are about 30 new look-alike token pairs that have suddenly popped up in the hours following the launch.
So far, these opportunists have minted the copycat tokens across different chains including Ethereum, Binance Smart Chain, and even Coinbases’ newest layer 2 Base.
As of publication, the largest PYUSD token fraud appears to be one that was minted on Ethereum and has seen over $2.6 million in trading volume. The fake token launched just a few minutes after PayPal launched its own stablecoin.
Another token identifies as “PepeYieldUnibotSatoshiDoge,” and has surged over 3,000% in the last 4 hours.
Meanwhile, despite the abundance of fake PYUSD tokens, confirming its authenticity may be as simple as just verifying it at this contract address. Besides, PayPal has announced that PYUSD may only be transferred between PayPal and compatible external wallets. Therefore, it becomes nearly impossible that any of the tokens bearing a similar ticker on any decentralized exchange are the real deal.
PayPal USD displayed huge prospects in the early hours of its launch, surging over 30,000% in the first eight hours. But despite the impressive start, it has since retraced, losing about 70% of its earlier gains.
The sharp decline, however, appears to be linked to the several imposter tokens that are out there taking up its trading volume and activity without the investors knowing. And unless investors are capable of auditing smart contracts themselves, these scammers may continue to cash in on the PayPal stablecoin launch for as long as possible.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
