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Just hours after PayPal announced its official stablecoin, deceptive clones hit the crypto world, with fraudsters trying to pass off over 60 fake tokens as the genuine “PayPal USD (PYUSD)”. Here’s how to distinguish the real McCoy from the counterfeits.
On August 7, one of the most prominent payment systems, unveiled its Ethereum-based stablecoin, PayPal USD (PYUSD). But within a short span, multiple networks, including BNB Chain, Ethereum, and Base, were flooded with tokens that scammers were marketing as the company’s “stablecoins”. The genuine PayPal USD, in reality, had been established in November 2022. Only registered PayPal users can transact with this stablecoin, either within the platform or to PayPal-compatible wallets. Therefore, numerous tokens with the PYUSD ticker, now trading on various crypto exchanges, are not affiliated with PayPal and its official “stablecoin”.
Despite PayPal’s warnings, these deceptive coins have caught the public’s eye. For instance, trading volume for one counterfeit Ethereum token with the PYUSD ticker on Uniswap reached a whopping $2.9 million. Interestingly, some users have pointed out that many of these sham tokens can’t even be sold.
Creating cryptocurrencies today is surprisingly easy, leading to a frequent influx of scam tokens in the market. One doesn’t need specialized knowledge or skills to launch a coin; sometimes, the whole process can take mere seconds.
Previously, BeInCrypto had delved into issues concerning PayPal stablecoin and its potential impact on the digital asset market.