Paxos mint's 300T Usd worth of "collateralized" paypal "stable coin" on accident, providing evidence of instability on paypal's new system.

PayPal’s head of blockchain unit, reassured users that PYUSD remains fully backed 1:1 by U.S. dollars, and the incident did not affect the circulating supply. He added that all the balances reflected accurate collateralization after the reversal.

If you ask me, this is clear evidence that PayPal’s new “stablecoin” can be manipulated on the same level as Luna Classic. Imagine what could have happened if it wasn’t managed by Paxos, but instead by a self-interested party.

This also proves why “just another centralized system” cannot be trusted. If control lies in the hands of a single entity, trust becomes impossible.

Decentralization and crypto are not buzzwords, they represent a the principle that no single organization, regardless of its size or reputation, can offer.