In an embarrassing error, PayPal blockchain partner Paxos accidentally minted 300 trillion PYUSD tokens today. PayPal’s stablecoin, which debuted it In 2023Deemed redeemable at 1:1 for US Dollars. $300 trillion is more than double the current world total GDP $117 trillion. In short, this is a really bad mistake from Paxos.
PayPal’s blockchain partner
At least the action seemed a mistake. Paxos admits a problem post At X, it assures clients that their funds are safe and says it has burned excess reserves of stablecoins. The company claimed that “this was an internal technical error.” Maybe so, but internal technical errors can still wreak havoc very quickly in finance, especially in the fantasy world of blockchain and crypto. Thanks for the apt naming Web3 is just going great To illustrate this story.