On August 7, 2023, Paypal made headlines by unveiling a new stablecoin, pegged to the value of the U.S. dollar. However, the lack of specific information regarding the token contract has given rise to confusion and speculation in the crypto community. Both Paypal and Paxos have provided some details, but critical aspects of the stablecoin remain shrouded in uncertainty.
Unveiling the PYUSD Stablecoin
Paypal’s announcement of the PYUSD stablecoin, tied to the U.S. dollar’s value, has piqued the interest of the financial world. However, while the information has been shared on their website, the actual token contract remains conspicuously absent, leaving potential investors and traders in a state of uncertainty.
Paxos, the partner in this endeavor, has disclosed that the stablecoin’s first attestation report is due for release in September 2023. Though no comprehensive contract details have been revealed, it has been revealed that PYUSD will operate as an ERC20-based token on the Ethereum platform.
The Conundrum of Missing Contract and Emerging Frauds
The absence of the PYUSD minting process has given rise to speculation and confusion among market participants. Some are surmising that a specific contract, possibly accessible through etherscan, could be the official one, but confirmation from the parties involved is still awaited.
This state of uncertainty has provided an opening for deceptive actors to take advantage. Fraudulent tokens like “PYUSD and Paypal Coin” have infiltrated decentralized exchange (dex) markets like Uniswap. One particular unauthorized and counterfeit token named “Paypal Coin” has garnered significant attention since the announcement.
These fraudulent Paypal tokens circulating through dex protocols pose a considerable risk to individuals, potentially resulting in financial losses. The crypto community has alerted Paypal about the perplexing situation, urging them to list the ERC20 contract address for PYUSD on their website, providing clarity and security to traders outside of Paypal’s ecosystem.
At the time of writing, Paxos has taken a step to allay concerns by sharing the token contract publicly through social media platform X. Alongside the official contract, they have also disclosed the Github repository. According to etherscan statistics, the total maximum supply of PYUSD stands at 26.9 million.