- Since the launch of PayPal’s new stablecoin (PYUSD), fake tokens with the same ticker have emerged.
- Nearly 30 new token pairs with the ticker “PYUSD” have been created on various chains.
- The real PayPal USD token was created in November 2022 and can be verified at a specific contract address.
- The imposter tokens listed on decentralized exchanges are not the real PayPal USD token.
- One imposter PYUSD token on Ethereum has seen $2.6 million in trading volume but has since dropped significantly.
- Some of the fake PYUSD tokens are likely “honeypots” where investors cannot sell and lose their crypto.
- Investors may not realize a token is a honeypot unless they audit the smart contract themselves.
- Degens (short for degenerates) often create memecoins to capitalize on trending stories and developments.
- This wave of fake PYUSD tokens follows similar trends in the crypto space.
Background
PayPal recently launched a new stablecoin called PYUSD. However, opportunists and potential scammers have quickly tried to create their own imitation tokens with the same ticker. These fake PYUSD tokens have appeared on different blockchain networks. It’s important to note that the real PayPal USD token was created in November 2022 and can be verified at a specific contract address. PayPal has explicitly mentioned that the genuine PayPal USD token can only be sent between verified PayPal and compatible wallets. Therefore, it is highly unlikely that any tokens listed with the same ticker on decentralized exchanges are legitimate. One imposter PYUSD token on Ethereum has seen significant trading volume in a short period. However, many of these fake tokens are likely “honeypots,” where investors are unable to sell and end up losing their cryptocurrency. This trend of creating fake tokens follows a pattern in the crypto space, where developers and traders create memecoins based on popular stories and trends.
