Stablecoin issuer Paxos accidentally minted an astonishing 300 trillion PayPal USD (PYUSD) tokens on Wednesday after a technical error disrupted its minting system.
The incident occurred at 3:12 p.m. ET, and the company resolved it immediately, according to its official update.
Paxos Responds to Technical Issue
In a post on X (formerly Twitter), Paxos confirmed that the error had been identified and addressed. Specifically, the company stated that it has “resolved the root cause” and that the system has returned to its normal state.
Moreover, Paxos clarified that no security breach occurred during the mishap and that all customer assets remained secure. In response, the team quickly burned the excess tokens to restore balance to the network.
Blockchain data from Etherscan revealed that the erroneous transaction originated from a Paxos hot wallet and was directed to PayPal’s PYUSD smart contract.
A Brief Moment of Impossible Wealth
Remarkably, the unintentional minting of 300 trillion PYUSD, equivalent to $300 trillion due to its 1:1 peg to the U.S. dollar, temporarily created more value than the U.S. national debt ($37 trillion) and even the global GDP (about $117 trillion) combined.
Although Paxos quickly destroyed the tokens, the brief existence of such an enormous supply attracted attention across the cryptocurrency community.
DeFi Market Impact and Recovery
The incident caused a short-term disturbance in decentralized finance (DeFi) markets. Lending protocol Aave reacted by freezing PYUSD markets as a precautionary step. The token’s price briefly slipped from its $1 peg but quickly stabilized after the burn.
Following the fix, Paxos resumed normal operations and minted 300 million PYUSD as part of its regular issuance cycle.
Current Standing of PYUSD
Despite the temporary glitch, PYUSD remains one of the leading stablecoins in circulation. According to CoinMarketCap, it currently ranks as the sixth-largest stablecoin globally, holding a market capitalization of around $2.6 billion.
Paxos’ quick response and transparent communication helped maintain confidence among PYUSD users and the broader crypto market.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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