Some tokens can’t be sold after buying, and creators can also just take away some tokens from buyers without warning.
People who want to trick others are trying to cheat those who aren’t cautious. They’re taking advantage of PayPal’s recent release of a digital token called PayPal USD (PYUSD), which is supposed to be equal to the value of the US dollar. These scammers are making fake versions of this token and putting them on different online networks.
According to information from DEXTools, more than 66 fake tokens have shown up on various networks, like Ethereum and BNB Chain, by the time it was noon in Asia on Tuesday. Most of these fake tokens were created on Ethereum, where the original PYUSD token is used.
PayPal, a big company that handles payments, announced on Monday that it will soon let people use its own digital money called PayPal USD (PYUSD). This is interesting because it’s the first time a major financial company is making its own stablecoin. People will be able to move PYUSD between their PayPal accounts and other digital wallets, use the tokens to buy things, and change other digital currencies supported by PayPal into PYUSD.
Even though these tokens aren’t available yet, some dishonest people are already trying to trick others. They’re doing this by creating a fake version of the PYUSD token. They give it the same name, add some value to it using ether or another token, and then offer it to people on a type of exchange that works without a central authority.
It’s possible for anyone to create their own tokens on blockchains like Ethereum, and it’s quite cheap to do so. Plus, with decentralized exchanges, these tokens can be created, given some value, and traded really quickly.
The people who make these fake tokens often buy most of them right after creating them. This makes it look like the token is popular, but it’s actually a trap. They might make a few thousand dollars in just a few hours with this trick, even though it’s very unfair and wrong.
Sometimes, the people who create these tokens might suddenly take away all the value from them shortly after making them. This makes the token’s price go down to zero, and the people who thought they were getting something valuable end up with nothing.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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