In the aftermath of PayPal’s recent announcement, a swarm of counterfeit PYUSD tokens, numbering around 30, has emerged.
Following the introduction of PayPal’s latest stablecoin, PYUSD, speculators, risk-takers, and potential fraudsters are already endeavoring to exploit the buzz by launching their own imitation tokens.
According to insights from DEX Screener, a decentralized exchange monitoring tool, a multitude of new token pairs with the “PYUSD” label have surfaced in the hours subsequent to the official declaration.
These mimic tokens have been generated across diverse blockchain networks, encompassing BNB Smart Chain, Ethereum, and Coinbases’ novel layer 2 solution, Base.
It’s worth highlighting that the bona fide PayPal USD token was established in November 2022 and can be authenticated using the provided contract address.
PayPal categorically clarified that PayPal USD is exclusively transmissible between authenticated PayPal accounts and compatible wallets. This casts significant doubt on the legitimacy of tokens sporting identical tickers on UniSwap or other decentralized exchanges.
The most prominent imitative PYUSD token, engineered on the Ethereum network, has garnered an astounding $2.6 million in trading volume shortly after PayPal’s stablecoin launch announcement. Yet, despite an initial surge surpassing 30,000%, this token has since nosedived by over 66% from its peak.
In a whimsical twist on PayPal’s stablecoin, one particular token opted for the moniker “PepeYieldUnibotSatoshiDoge.” This fraudulent token achieved an astonishing 3,000% surge in just four hours.
Numerous of the sham PYUSD tokens listed are likely “honeypots,” a tactic where once an investor procures the token, they are entrapped and unable to divest, resulting in a relinquishment of their cryptocurrency holdings.
Unless investors possess the capability to comprehensively audit smart contracts, they often only realize the fraudulent nature of the token when they endeavor to offload their holdings.
Enthusiastic individuals have been observed racing to fabricate new memecoins to exploit trending narratives and developments.
On August 3rd, unidentified developers conceived an “LK-99” token, endeavoring to capitalize on the superconductor fervor.
A week prior, on July 27th, crypto enthusiasts crafted an assemblage of over 50 UFO-themed memecoins, coinciding with a United States Congressional hearing where a whistleblower accused the government of concealing extraterrestrial encounters on Earth.