A series of counterfeit tokens of PayPal's stablecoin - PYUSD have emerged.
Similar to USDT or USDC, PayPal USD (PYUSD) is a type of stablecoin backed by the US dollar, short-term US government bonds, and other cash-equivalent assets.
Scammers are taking advantage of PayPal's launch of the stablecoin PYUSD to attempt to defraud users. One of the most common methods is to create fake tokens of this stablecoin on various networks.
According to data from DEXTools, there have been nearly 79 counterfeit PYUSD tokens appearing on networks such as Ethereum, BNB Chain, Base, and many others. The majority of these tokens have been issued on Ethereum, where PYUSD is originally launched.
After creating these counterfeit tokens, scammers will pump some money into the liquidity pool, create fake transactions, and promote the tokens or airdrop them directly into users' wallets in an attempt to deceive unsuspecting individuals and steal their money.
This can happen because anyone can create a smart contract and issue tokens on Ethereum (or other blockchains) with just a few coins, and the presence of decentralized exchanges means that tokens can be instantly listed, provided liquidity, and traded right away.
Most of these tokens are traps, in fact. After a while, the individuals behind them will perform a "rug pull," withdrawing all liquidity from the counterfeit tokens, causing their value to drop to zero, thus scamming investors out of their funds. Show Less
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