Blockchain data shows that the stablecoin issuer Paxos minted and burned 300 trillion PayPal USD stablecoin tokens within 30 minutes, leaving many cryptocurrency users puzzled.
After the minting and burning event on Wednesday, Omer Goldberg, founder of Chaos Labs, posted on the X platform that Aave would temporarily freeze trading of PayPal USD (PYUSD) due to "unexpected large transactions" involving the minting and burning of the stablecoin. Ethereum blockchain data indicates that Paxos minted 300 trillion stablecoins pegged to the US dollar at 7:12 PM UTC, and then destroyed the entire amount 22 minutes later by sending it to an inaccessible wallet.
PYUSD is pegged to the US dollar at a 1:1 ratio, making the value of the destroyed tokens approximately $300 trillion. As of the time of writing, the market capitalization of this stablecoin exceeds $2.3 billion, making it the sixth largest stablecoin, following Tether's USDT, USDC, Ethena USDe (USDE), Dai (DAI), and World Liberty Financial USD (USD1).
Paxos stated in a post on X on Wednesday that "an excessive amount of PYUSD was mistakenly minted" as part of an internal transfer.
"This is an internal technical error," Paxos said. "There is no security breach. Customer funds are safe. We have resolved the root cause."
PYUSD maintained its peg to the US dollar after the news broke, but according to Nansen data, its price briefly dropped by about 0.5%.
According to the International Monetary Fund, $300 trillion is more than twice the total GDP of all countries on Earth.
Some of the most significant token burns include the cryptocurrency exchange OKX sending over 65 million OKB to inaccessible addresses in August in an effort to keep the supply at 21 million. The project behind the Bonk meme coin burned approximately 1.7 trillion BONK in December 2024, but at that time, those tokens were only worth about $50 million.
Related: Analyst Peter Brandt: Bitcoin (BTC) may see another drop before reaching a new all-time high.
Original article: “The Largest ‘Fat Finger’ in History: Paxos Accidentally Mints and Burns 300 Trillion PYUSD”
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