Aave has temporarily suspended trading of PayPal USD (PYUSD) following an unprecedented $300 trillion mint and burn by stablecoin issuer Paxos. Blockchain data revealed that Paxos minted and subsequently burned the massive amount of PYUSD within a 30-minute window, raising questions across the crypto community. The transaction, which occurred on the Ethereum blockchain, involved minting at 7:12 pm UTC and burning the entire amount 22 minutes later.
The incident has sparked speculation about whether the transaction was an accidental mint or a deliberate test by Paxos. Despite reaching out for clarification, neither Paxos nor PayPal has commented on the situation. The scale of the transaction, which exceeds the combined GDP of all countries, has left many in the industry seeking answers. Aave's decision to freeze PYUSD markets underscores the unusual nature of the event.
Aave Halts PYUSD Trading After $300 Trillion Mint and Burn by Paxos
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