But I’m no fan of drama. So I decided not to say anything.
(I won the game easily, by the way.)
Posted on 10/16/2025 11:42:23 AM PDT by Red Badger
Key Points
Paxos mistakenly minted the stablecoins as part of an internal transfer, before it “immediately identified the error and burned the excess PYUSD,” the company said in a social media statement.
There aren’t enough dollars in global circulation to back $300 trillion PYUSD, which would theoretically require more than double the world’s estimated total GDP.
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Paxos, the blockchain partner of PayPal , mistakenly minted $300 trillion worth of the online payment giant’s stablecoin on Wednesday in what the company called a “technical error.”
Market watchers had spotted the enormous injection of the PayPal PYUSD stablecoin on Etherscan — a block explorer and analytics platform for the Ethereum blockchain.
Paxos had mistakenly minted the stablecoins as part of an internal transfer, before it “immediately identified the error and burned the excess PYUSD,” the company said in a social media statement.
“This was an internal technical error. There is no security breach. Customer funds are safe. We have addressed the root cause,” it added. PayPal didn’t respond to an inquiry from CNBC outside of regular business hours.
Transactions on Etherscan showed that the mistake had been fixed after about 20 minutes.
VIDEO AT LINK...................
PayPal crypto chief discusses adoption of its native stablecoinwatch now
VIDEO09:46
PayPal crypto chief discusses adoption of its native stablecoin
PYUSD is advertised as a dollar-pegged stablecoin that is fully backed by U.S. dollar deposits, U.S. treasuries and similar cash equivalents. Therefore, PayPal says the tokens are always redeemable for U.S. dollars on a 1:1 basis.
However, the technical error highlights that the dollar peg is guaranteed by PayPal and its independent third-party attestation reports, rather than intrinsically tied to the minting of a stablecoin.
There aren’t enough dollars in global circulation to back $300 trillion PYUSD, which would theoretically require more than double the world’s estimated total GDP.
Paxos’ error comes at a time when stablecoins are becoming more mainstream as its adopted by an increasing number of banks and payment platforms.
PYUSD is currently the sixth-largest stablecoin in the world with a market capitalization of over $2.6 billion, according to data from CoinMarketCap.
Scam.
Dry run for the actual heist?
Shady this stuff makes me nervous. No one knows what’s going on. I hope Scott Bessent lets them stew in their own juices if this goes bad If anything goes bad for that matter.
Oops!
Did somebody accidentally sit on their work phone, pressing that Zero Button down, and keeping it down for a full minute? Oops! The Short Seller’s version of Butt Dialing.
But I’m no fan of drama. So I decided not to say anything.
(I won the game easily, by the way.)
Only a matter of time before the US government does the same, I fear.
“There aren’t enough dollars in global circulation to back $300 trillion PYUSD, which would theoretically require more than double the world’s estimated total GDP.”
There isn’t a Congresscritter alive or dead who sees that as a problem...
Hahahahahahahah!
The good news it’s all in Zimbabwean dollars. That’s only about 8 cents.
I rememeber a while back, during the Kenyan lightbringer’s regime, there was something like 4 trillion dollars of stock sell offs in a matter of minutes. When the political value had passed it was excused as someone with “fat fingers” who made a mistake on their touch screen.
It can happen so easily, unless there are built in safe guards.
it “immediately identified the error and burned the excess PYUSD,”
What happens when the next glytch is not “immediately” identified?
inflation
Does this mean someone was a multi-trillionaire for a moment? Who oversees the person who can “mint” $300 trillion dollars at the touch of a button and just as easily burn that amount. Is this what people are buying and investing in?
I have $180 trillion in Zimbabwe banknotes. A $100 trillion 50, 20 and 10. Not sure if it is a complete set but they are in different colors. Cost about $5 US about 20 years ago on eBay. I don’t think they are legal tender in that African paradise anymore but they are a reminder to me about how governments roll.
So, can the "non-excess" PYUSD be just as easily "burned?"
I prefer assets that I can hold in my hand, assets I can walk on (land).
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