Digital payment and financial technology giant PayPal recently announced its own US dollar-based cryptocurrency called PayPal USD. While this cryptocurrency has garnered a lot of attention, it has also become a favorite tool for scammers. PYUSD, which is seen by some as a significant step forward, has now become scammers’ top priority.
Since January 2022, when PayPal showed interest in the concept of a stablecoin, scammers have been preparing for this moment, just like PayPal. Scammers are now capitalizing on this trend, and there is currently a flood of PYUSD on decentralized exchanges.
In response to the emergence of numerous tokens with similar names on decentralized cryptocurrency exchanges, PayPal issued a warning. PayPal emphasized that PayPal USD can only be sent through approved PayPal users and platforms. However, more than 20 PYUSD tokens have been released in the past 24 hours. Among them, one of the most “successful” tokens appears to have achieved a trading volume of $2.6 million in a short period of time.
Although it is a stablecoin, meaning its value is equal to 1 US dollar, this fake PYUSD experienced a 30,000% surge in value in the first 8 hours, followed by a 66% crash. Another cryptocurrency launched in the market focused on PayPal’s stablecoin is a “fantastic” token called PepeYieldUnibotSatoshiDoge. It seems that even this scammer achieved a 3,000% increase in volume with this project.
All existing fake PYUSD tokens currently use the method known as “honeypot,” which means that once purchased, they cannot be sold again. This actually explains the reason for the price increases. As long as investors cannot personally audit these smart contracts, they should always rely on official sources before investing in tokens that attract so much attention.
Fake cryptocurrencies or copycat projects are being increasingly associated with scams, and the situation is getting worse. Investors seem to be responsible for protecting themselves against everything.