In the wake of PayPal’s debut of its stablecoin, PYUSD, the cryptocurrency world is witnessing an influx of impersonators eager to exploit the enthusiasm.
The Rise of PYUSD Imitators
Within mere hours of PayPal’s announcement, the decentralized exchange scanner, DEX Screener, recorded an alarming appearance of nearly 30 new tokens parading under the “PYUSD” ticker. These imitation tokens have surfaced across various blockchain platforms. Most are noted across BNB Smart Chain, Ethereum, and Coinbase’s latest layer 2, Base.
For the discerning investor, it’s paramount to realize that the authentic PayPal USD token saw its inception in November 2022. PayPal has firmly clarified that the legitimate PYUSD is only transactable between verified PayPal and other compatible wallets. That makes the prospect of any PYUSD tokens traded on UniSwap or similar decentralized exchanges being genuine highly improbable.
Tracking the Largest Imposter
The Ethereum-minted PYUSD impersonator stands out in its audacity. It witnessed a staggering $2.6 million in trading volume quickly. Even more eyebrow-raising is its meteoric surge of over 30,000% within eight hours post-launch. However, the coin’s value sharply declined, experiencing a fall of more than 66% from its peak.
One token adopted a cheeky approach amid the chaos. Christened as “PepeYieldUnibotSatoshiDoge,” this imitator rode the hype wave, boasting a 3,000% rise within four hours.
The PYUSD Honeypot Danger
A significant number of these counterfeit PYUSD tokens operate as “honeypots.” In these deceptive schemes, selling becomes impossible once an investor acquires the token. That leads to an unintended and irreversible donation of their cryptocurrency. Regrettably, unless adept at auditing smart contracts, many investors remain oblivious to the honeypot trap until they attempt a sale.
Navigating the cryptocurrency landscape requires vigilance, especially amidst the proliferation of imitator tokens. Investors are urged to exercise caution, verify sources, and remain informed to secure their investments.