The recent launch of PayPal's dollar-pegged stablecoin, PayPal USD (PYUSD), has drawn the attention of scammers who are generating fake tokens on various blockchain networks, including Ethereum, BNB Chain, and Base.
Fake PayPal USD Tokens Appear On Multiple Blockchains Raising Fraud Concerns
As of today, more than 66 fake PYUSD tokens have surfaced, mainly on the Ethereum network where the legitimate PYUSD operates.
PayPal, a major payments company based in New York, announced that it plans to make a significant move to launch the PYUSD stablecoin.
This development allows users to transfer PYUSD between PayPal accounts and supported external digital wallets, use tokens for purchases or convert other supported cryptocurrencies to and from PYUSD.
However, scammers wasted no time in abusing unsuspecting users. Their approach includes generating fake tokens with the name “PYUSD”, providing liquidity using Ethereum or other tokens, and then offering these fake tokens on decentralized exchanges.
The ease of issuing tokens on blockchain networks and the availability of decentralized exchanges enable scammers to quickly release and trade these fake tokens.
As the use of stablecoins and digital assets continues to spread, investors and users are advised to be cautious and do extensive research before engaging with new tokens or projects.
*Not investment advice.