When internet payment trailblazer PayPal announced the creation of a stablecoin on Ethereum, the result was a 2% surge in its stock – quite the feat for a tech firm with more than 400 million active users and a massive stake in eBay transactions. However, it hardly rains without pouring in the crypto world and PayPal’s PYUSD announcement was quickly followed by a swarm of imposter tokens trying to cash in on the ensuing buzz.
Ethereum, layer 2s, and the BNB Smart Chain now host tokens like ‘pepeyieldunibotsatoshidoge’ (PYUSD) hoping to leech off the original’s success. Some of these imposters experienced trading volumes close to $3 million within a few hours, hinting at possible rug pulls in the future.
Crypto appears to be a land divided, with one side advocating tech-based crypto, while another favours money-driven crypto. Some thrive on pushing boundaries and breaking things; others prefer to go slow and steady. These differing visions have led to the creation of a dynamic ecosystem. Amidst the noise, seeing a prestigious payment company like PayPal leveraging Ethereum for its growth is quite impressive.
Facing surveillance and potential ‘censorship’ no different from PayPal or its subsidiary Venmo, the PayPal stablecoin signifies internal discord. PayPal intends to operate within the established financial system, an approach shaped by its experience with banks and governments.
The PYUSD stablecoin, however, promises to be widely accessible but not without its set of restrictions. Despite restrictions acting as a deterrent to autonomy-loving coders, PayPal’s commitment to transparency is commendable.
This commitment can be seen from its agreement with Paxos, the actual provider of PayPal USD, to publish a monthly reserve report. Simultaneously, though, this contradicts crypto’s aim to break away from traditional financial companies that control how people transact online and have access to their transaction history.
PayPal’s entry into the crypto realm serves as a massive boost to the industry’s credibility, accessibility, public education, and compels other players to grapple with the practicality of blockchains. On the flip side, with the likes of PayPal being major crypto service providers, the face of Web3 could change drastically, potentially becoming unrecognizable to today’s users.
Web3’s future might still hang in the balance amidst differing visions and corporate powers, but the spectacle of the crypto world moving, evolving, and sometimes even squabbling like a pack of wolves sure leaves an awe-inspiring impression. In crypto, as in nature, the conflict between the wolves will determine the direction of movement. After all, there are no winners or losers, just survivors.
Source: Coindesk
