Paxos, the organization that powers PayPal’s PYUSD stablecoin, briefly
generated 300 trillion tokens before immediately removing them
from the digital ledger.
Data from the Ethereum
minted
the massive sum of PYUSD around 7:12 PM UTC. Just 22 minutes later, the
newly created tokens were
burned
, sending them to an inaccessible digital location.
This unexpected event led to swift reactions, including Aave
temporarily suspended PYUSD-related activities to investigate any potential effects. Omer Goldberg,
the head of Chaos Labs,
announced the pause
in a statement posted on X.
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Although these tokens were never circulated, their
momentary existence represented a value of $300 trillion, based on the PYUSD’s
intended equivalence to the U.S. dollar. To put this in perspective, that amount is more than twice the
total global GDP,
according to figures
provided by the International Monetary Fund (IMF).
Later the same day, Paxos issued an
official statement on X
. The organization clarified that this event
stemmed from a technical error that occurred during an internal fund transfer.
They confirmed that the incident was
not the result of any security breach or hacking attempt, and that no user funds were ever at risk.
They also said that the issue has already been successfully addressed.
PYUSD remains an active player in the cryptocurrency market, showing a capitalization valued at over $2.3 billion. This positions it in sixth place among stablecoins, following market leaders like Tether
In other news, Paul Faecks, who is head of Plasma, recently responded to community concerns after the XPL token’s value decreased by over 50%. To find out what he had to say,
read the complete article
.