PayPal's Stablecoin Unlikely to Gain Widespread Adoption in the Near Future: Bank of America
Spurious PayPal USD Tokens Surprisingly Appear Across Multiple Blockchains
Bitcoin Pizza Day Turns Bitter as Meme Coin Swindlers Rake in Over $200K with Rug Pull Scams
Fraudsters are attempting to deceive innocent users by taking advantage of PayPal's (PYPL) newly introduced PayPal USD (PYUSD) stablecoin, which is pegged to the US dollar. They are doing this by creating counterfeit tokens on multiple networks.
More than 66 counterfeit tokens have emerged across various networks, including Ethereum, BNB Chain, Base, and others by Tuesday's midday in Asia, according to data from DEXTools. The predominant number of these fraudulent tokens have been introduced on Ethereum, the platform where the authentic PYUSD is originally established.
On Monday, PayPal, the prominent payments company headquartered in New York, announced its upcoming plan to offer its users access to the PayPal USD (PYUSD) stablecoin. This groundbreaking move signifies the inaugural instance of a major financial institution introducing its very own stablecoin.
Individuals have the ability to seamlessly move PYUSD between PayPal and compatible external digital wallets, utilizing these tokens for transactions involving purchases of products and services, as well as the conversion of any of PayPal's supported cryptocurrencies to PYUSD and vice versa.
Although the tokens have not been released, certain fraudsters are already attempting to ensnare unaware individuals. Their method involves creating a token, labeling it as "PYUSD," providing liquidity using either ether or another token, and then presenting it to users on a decentralized exchange.
This feasibility stems from the fact that anyone has the capability to invoke a smart contract and create tokens on Ethereum (or other blockchains) at a minimal cost. With the existence of decentralized exchanges, these tokens can be promptly generated, endowed with liquidity, and swiftly traded.
The majority of these tokens' supply is probably acquired by their creators shortly after they are issued, creating the impression of a popular token while actually functioning as a deceptive scheme. This endeavor could generate several thousand dollars within just a few hours for these developers, turning it into a lucrative yet entirely unscrupulous undertaking.
However, certain developers might withdraw all liquidity from the counterfeit tokens within hours of their release. This action could result in a complete price plummet of 100%, leaving speculative investors with nothing but worthless digital assets.
