Scammers Exploit PayPal’s PYUSD Stablecoin Launch with Counterfeit Tokens on Multiple Networks
In an attempt to deceive unsuspecting users and capitalize on the recent launch of PayPal’s dollar-pegged stablecoin, PYUSD, scammers have resorted to issuing fraudulent tokens across various networks. Data from DEXTools reveals that more than 66 fake tokens have surfaced on platforms like Ethereum, BNB Chain, Base, and others, particularly targeting Ethereum, where the legitimate PYUSD exists.
PayPal, the prominent New York-based payments giant, announced on Monday its plan to introduce the PayPal USD (PYUSD) stablecoin to users. This groundbreaking move marks the first time a major financial company has taken steps to issue its own stablecoin.
PYUSD holders will have the convenience of transferring their tokens between PayPal and compatible external digital wallets. Additionally, they can utilize PYUSD for making purchases or convert it to and from other cryptocurrencies supported by PayPal.
Despite the official tokens being yet to become available, scammers have already embarked on their schemes to ensnare unwary users. Their modus operandi involves issuing a token bearing the name “PYUSD,” providing liquidity through ether or another token, and subsequently offering it to users on decentralized exchanges.
The ease of creating tokens by invoking smart contracts on Ethereum and other blockchains, often at a minimal cost, has facilitated this fraudulent activity. Decentralized exchanges further enable these counterfeit tokens to be swiftly issued, supplied with liquidity, and traded almost instantly.
By purchasing a significant portion of their own counterfeit tokens after issuance, the scammers create the illusion of a popular and sought-after token, enticing potential investors. In reality, however, these tokens function as honeypots designed to deceive and defraud unsuspecting individuals. This unethical venture can yield substantial profits, raking in thousands of dollars within a short span for these unscrupulous developers.
Adding to the deception, some developers may resort to pulling out all liquidity from the fake tokens shortly after issuance. This results in an abrupt and devastating 100% drop in token value, leaving speculators holding nothing but digital dust.
As scammers exploit the excitement surrounding the PayPal USD stablecoin launch, it is crucial for users to exercise caution and conduct thorough research before engaging with any unfamiliar tokens on decentralized exchanges.
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