Wave of Counterfeit PYUSD Tokens Floods Market Following PayPal’s Stablecoin Launch

In a swift response to PayPal’s introduction of their new stablecoin (PYUSD), a wave of opportunists, speculators, and potential fraudsters has emerged, attempting to exploit the ensuing excitement by launching their own imitation tokens.

Decentralized exchange scanner DexScreener’s data reveals that within a mere 16 hours since the official announcement, approximately 30 new token pairs, all bearing the ticker “PYUSD,” have materialized.

These counterfeit tokens have been generated on various blockchains, including Binance Smart Chain, Ethereum, and Coinbase’s latest layer 2 solution, Base.

However, it’s essential to recognize that the authentic PayPal USD token was established back in November of the previous year. The legitimate contract address can be verified accordingly. Notably, PayPal had explicitly stated that PayPal USD could solely be transmitted between verified PayPal accounts and other compatible wallets. As a result, it’s exceedingly improbable that any tokens listed with the same ticker on platforms like UniSwap or other decentralized exchanges are legitimate.

The most significant imposter PYUSD token, created on the Ethereum network, has already amassed a staggering $2.6 million in trading volume since its inception, which occurred mere moments after PayPal’s stablecoin launch was unveiled. Despite experiencing an initial surge of over 30,000% within the first eight hours, the token’s value has since plummeted by more than 66% from its peak.

A touch of humor was introduced by one particular token, cheekily dubbed “PepeYieldUnibotSatoshiDoge.” This imitation token has enjoyed a remarkable surge of over 3,000% within the past four hours.

Notably, several of these fraudulent PYUSD tokens are likely to be what are commonly referred to as “honeypots.” This term denotes that once an investor acquires the token, they encounter an inability to sell it, effectively relinquishing their cryptocurrency.

For those who lack the capability to personally audit smart contracts, discovering that they have engaged with a honeypot often only becomes evident when attempting to liquidate their holdings.

These entrepreneurial enthusiasts, known colloquially as “degens,” have gained a reputation for rushing to mint new meme-inspired coins in an effort to capitalize on trending narratives and developments.

On August 3, a group of anonymous developers introduced the “LK-99” token, aiming to exploit the prevailing excitement around superconductors. A week prior, on July 27, degens seized upon the attention surrounding a U.S. Congressional hearing, where a whistleblower claimed that the U.S. government was concealing evidence of extraterrestrial encounters. This led to the creation of more than 50 UFO-themed meme coins.

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