Fake PYUSD Tokens Emerge Across Blockchains, Investors Beware

Key Insights

• PayPal’s introduction of the PYUSD stablecoin triggers a surge in fake tokens
• Nearly 30 imitation tokens with the “PYUSD” label surface across various blockchain networks
• Imitation tokens, often “honeypots,” attempt to mimic the genuine PayPal USD token

Following the launch of PayPal’s latest stablecoin, the PYUSD, there’s been a rush of opportunists, risk-takers, and possible scammers attempting to ride the wave of excitement by launching their own imitation tokens.

Beware of fake PYUSD tokens

Data from DEX Screener, a decentralized exchange tracker, reveals that nearly 30 new token pairs under the label “PYUSD” have sprung up in the short span since the initial announcement.

These mimicking tokens have been spawned on different blockchain networks such as BNB Smart Chain, Ethereum, and the most recent layer 2 solution from Coinbase, Base.

It’s crucial to emphasize that the genuine PayPal USD token came into existence back in November 2022, and you can verify its legitimacy using the contract address provided.

PayPal was quite explicit in stating that their USD token could only be exchanged between verified PayPal accounts and other compatible wallets, making it highly improbable that any of the tokens bearing the same “PYUSD” label on UniSwap or any other decentralized exchange are authentic.

Read also: How to Buy PYUSD Stablecoin on PayPal

The largest imposter PYUSD token, built on Ethereum, managed to rack up a staggering $2.6 million in trading volume mere minutes after PayPal unveiled its stablecoin.

Although it experienced a jaw-dropping surge of over 30,000% within the first eight hours, the token’s value has since nosedived by more than 66% from its peak.

One intriguingly named token took a lighthearted spin on PayPal’s stablecoin, dubbing itself “PepeYieldUnibotSatoshiDoge.” This mimic token managed to gain an impressive 3,000% in value within a mere four hours.

Dangers of imitation tokens

A significant number of these bogus PYUSD tokens seem to be designed as “honeypots,” a term used to describe tokens that trap investors. Once purchased, these tokens become virtually impossible to sell, leaving investors with no choice but to relinquish their cryptocurrency holdings.

Unless investors are adept at inspecting smart contracts on their own, they often remain unaware that a token is a honeypot until they attempt to divest their assets.

Enthusiastic risk-takers are known for swiftly creating new memecoins to capitalize on emerging trends and developments. Just recently, on August 3rd, anonymous developers introduced an “LK-99” token to profit from the superconductor craze.

And the week prior, on July 27th, these intrepid memecoin creators conjured up a collection of more than 50 UFO-themed tokens, coinciding with a United States Congress hearing where a whistleblower made allegations about the U.S. government concealing extraterrestrial encounters on Earth.