In an unexpected and imminent incident, paxos, the issuer behind paypal’s Pyusd Stillion Stablecoin, accidentally 300 trillion pyusd – yes, with “yes” – earlier today after inserting some additional zeres. The explosion was quickly rectified as Paxos burned the hard tokens and returned a fair amount of 300 million, but not before the crypto community noticed the jaw-dropping image.
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To put the scale of the error into perspective, 300 trillion prillion would have exceeded the entire US currency (M2) – currently around $ 21 trillion – about 14 times. In global terms, it would represent almost three times the estimated value of M2 worldwide, about $100 trillion. In other words, for a while, paxos ‘created’ enough digital dollars to buy almost every publicly traded company in the world.
The situation sparked a wave of disbelief and ridicule from the media, with traders and analysts jokingly mocking what may be the biggest mistake in crypto history. While Paxos worked quickly to correct the error and confirm that no funds were involved, the event supported discussions on the accuracy of the smart contract, and the possible consequences of such financial errors.
Paxos Responds to Hitting Error, Spark Controversy with More Stablecoin
On Wednesday afternoon, Paxos addressed this situation directly on X, confirming that the integration of 300 trillion pyusd was the result of an internal error during the normal transfer. The company said:
“At 3:12 PM Est, Paxos mistakenly merged an excess pyusd as part of an internal transmission. Paxos quickly identified a technical error. This was not a technical error. We are safe.”
This device quickly alleviated the fear of a security breach or loss of money, but the incident quickly became the subject of widespread jokes and criticism in the crypto community. Traders and developers scoff at the idea that a few misplaced zeros could reduce global liquidity by trillions of dollars – a further reminder of how much work can be done by human or technology errors.
While the dispute was resolved within minutes, it fueled the debate over the procedures for depositing stablecoins and the need for face and material. Some industry observers say that such events emphasize why the issuance of stablecoins should face various general standards, especially when they are tied to large institutions such as PayPal. Others struggle with Blockchain’s perceived objectivity – an error can be detected quickly, identified, and corrected without harm.
Ultimately, the event highlights a deep rift within the stablecoin sector: how to balance new capabilities and automation with the level of oversight and accountability expected from digital representations of real-world currencies.
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STALECECOIN dominance shows the growing awareness of the market
The chart shows that the Stablecoin market dominance has returned to 8.49%, signaling a significant change in risk dominance following the sharp market correction last Friday. Historically, the dominance of stablecoins has shown the capital that traders move to safety – holding stablecoins such as USDT, USDC, or DAI rather than bitcoin or altcoins.
After dipping below 7.5% in late September, the pullback doubled during last week’s crash, even spitting briefly near 9.5%, the highest level since early June. This cleanup coincides with the massive reporting activity reported by tether and circle, which together released more than $4.5 billion in new stablecoins after the sale. The move suggests that major players and institutions are preparing for liquidational preservation
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If the royalty continues to add up to 8-9%, it would indicate that investors are still reluctant to invest in crypto assets, waiting for market confirmation. On the other hand, a sustained drop below 8% would mark renewed confidence and point to Bitcoin and Altcoins. For now, the chart points to a cautious but fluid market, where participants are ready to act if volatility is disrupted.
Featured image from chatgpt, chart from artIngview.com
