Since the launch of PayPal’s new stablecoin (PYUSD), there has been a surge in opportunists, degens, and potential scammers attempting to cash in on the hype by creating their own copycat tokens. According to data from the decentralized exchange scanner DEX Screener, nearly 30 new token pairs with the ticker “PYUSD” have emerged in the hours since the announcement.
These look-alike tokens have been minted on various chains, including BNB Smart Chain, Ethereum, and Coinbases’ newest layer 2, Base. However, it is crucial 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 stated that PayPal USD can only be sent between verified PayPal and other compatible wallets. This makes it highly unlikely that any tokens listed with the same ticker on UniSwap or any other decentralized exchange are genuine. Despite this, the largest imposter PYUSD token, minted on Ethereum, has experienced a staggering $2.6 million in trading volume since its inception just minutes after PayPal announced its stablecoin launch.
Even though this imposter token surged over 30,000% in the first eight hours, it has since plummeted more than 66% from its all-time high. Additionally, some tokens have been given humorous names like “PepeYieldUnibotSatoshiDoge,” which gained over 3,000% in just four hours.
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Many of these fake PYUSD tokens listed are likely “honeypots.” Investors who purchase these tokens cannot sell them and effectively end up giving away their cryptocurrency. Unless investors are capable of auditing smart contracts themselves, they may not realize they have fallen into a honeypot until they attempt to sell their holdings.
There is a history of degens racing to mint new memecoins to capitalize on trending stories and developments. For example, anonymous developers created an “LK-99” token on August 3 to cash in on the superconductor craze. Similarly, before that, on July 27, degens crafted more than 50 UFO-themed memecoins as the United States Congress held a hearing where a whistleblower accused the government of covering up alien visitation to Earth.
In light of these developments, it is essential for investors to exercise caution when dealing with copycat tokens and be mindful of the risks involved. It is advisable to conduct thorough research, verify contract addresses, and only engage with reputable platforms and exchanges.
The emergence of copycat tokens highlights the need for greater regulatory measures and industry standards to protect users from potential scams and fraudulent activities. As the crypto ecosystem continues to evolve and gain mainstream adoption, ensuring a safe and secure environment for participants is paramount.
In conclusion, the launch of PayPal’s stablecoin has sparked a wave of opportunists and scammers creating copycat tokens. These tokens, minted on various chains, are unlikely to be genuine and pose risks to investors. It is crucial for individuals to exercise caution, conduct due diligence, and only engage with reputable platforms. The crypto industry should work towards implementing stronger regulations and standards to protect users in this rapidly evolving landscape.
