A $300 Trillion Fat-finger, as Paxos Accidentally Mints and Burns PYUSD

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Blockchain knowledge confirmed stablecoin issuer Paxos each minted and burned 300 trillion tokens of the PayPal USD stablecoin inside half-hour, leaving many crypto customers scratching their heads.

In a Wednesday X submit following the mint and burn, Chaos Labs founder Omer Goldberg mentioned Aave can be briefly freezing trades for PayPal USD (PYUSD) after an “unexpected high-magnitude transaction” of minting and burning the stablecoin. Ethereum blockchain knowledge confirmed Paxos minting 300 trillion of the US dollar-pegged stablecoin at 7:12 pm UTC and then burning your entire quantity 22 minutes later by sending it to an inaccessible pockets.

PYUSD, pegged 1:1 to the US greenback, makes the availability of the burned cash value about $300 trillion. The stablecoin has a market capitalization of greater than $2.3 billion at this writing, making it the sixth-largest coin behind Tether’s USDt (USDT), USDC (USDC), Ethena USDe (USDE), Dai (DAI) and World Liberty Financial USD (USD1).

The 300 trillion PYUSD mint. Source: Etherscan

In a Wednesday X submit, Paxos mentioned it had “mistakenly minted excess PYUSD as part of an internal transfer.”

“This was an internal technical error,” mentioned Paxos. “There is no security breach. Customer funds are safe. We have addressed the root cause.”

Related: World Liberty burns 47M tokens in bid to pump value as slide continues

PYUSD maintained its greenback peg following the information, however its value briefly dropped by about 0.5%, in accordance with knowledge from Nansen.

PayPal, Paxos, Stablecoin, Aave, Minting, PayPal USD
PYUSD value instantly after the mint and burn. Source: Nansen

$300 trillion is greater than twice the Gross Domestic Product for each nation on earth, in accordance with knowledge from the International Monetary Fund.

Biggest burns in crypto historical past

Some of probably the most vital token burns embody cryptocurrency change OKX sending greater than 65 million OKB to an inaccessible deal with in August in an effort to maintain the availability at 21 million. The mission behind the Bonk memecoin burned about 1.7 trillion BONK in December 2024, however the cash had been solely value about $50 million on the time.

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