rewrite this title The Crypto World Held Its Breath: $300 Trillion Accidentally Minted

The possibility of unlimited asset minting in the cryptocurrency world through blockchain technologies raises questions. Controlling it also seems almost impossible.

The succession of events in the cryptocurrency world, which is touted as the new investment vehicle for the financial sector and thought to have entered a new era with institutional interest, shows just how precarious the situation is.

The Crypto World is Stunned

PayPal, in collaboration with Paxos Trust (the firm that also manages the gold-backed PaxG cryptocurrency), had launched its stablecoin, PayPal USD (PYUSD), initially for US users. PYUSD, stated to be backed by actual US dollars and treasury assets, is the basis for many transactions within the app, such as internal usage and user-to-user transfers. Paxos Trust performs the minting (issuance) process when necessary.

However, an incident that occurred late at night caused the crypto world to hold its breath. Paxos Trust minted a staggering 300 trillion PYUSD. According to the initial data on chain statistics, the ‘Send’ feature was also not disabled during this minting, meaning the amount could have been sent to any supported platform.

In the first hours after the minting, anxieties peaked. This sum, which was many times the total money held by the entire financial world, could have been used to send money to all liquidity pools in the market, illegally obtain interest, and crash the market.

Fortunately, the intense stress did not last too long, and it was understood that the $300 trillion was minted by mistake. Hours later, Paxos executed the burning of this amount, and the correct amount of 300 million PYUSD was minted and released to the market. Still, many accounts speculate that this error was actually a reference to the GENIUS stablecoin law, which is set to come into effect soon.

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