Nearly three weeks after its launch, the PayPal USD stablecoin has attracted limited adoption. Defunct crypto exchange FTX has announced a cybersecurity breach involving its bankruptcy case claims agent, Kroll, in which limited, nonsensitive customer data of specific claimants was exposed. Meanwhile, the Pepecoin (PEPE) memecoin took a sharp dive in price after strange token movements sparked fears of the beginning of a rug pull.
PayPal’s stablecoin sees limited uptake post-launch
The launch of PayPal’s stablecoin, PayPal USD (PYUSD), has been met with limited adoption so far, according to on-chain data compiled by Nansen.
Since launching on Aug. 7, roughly 90% of PayPal USD is still held by Paxos Trust, the stablecoin’s issuer. Only 7% of the total supply of PYUSD is held on exchanges like Kraken, Gate.io and Crypto.com. In other words, the coin isn’t circulating on exchanges and has seen limited adoption by crypto users.
Excluding contracts and exchanges, only 10 holders have amassed over $1,000 worth of PYUSD, Nansen said. Adoption among so-called “smart money” investors, a term used to describe institutions and professional traders, is negligible.
PayPal has over 350 million users, and the launch of a stablecoin was supposed to be a seminal moment for crypto adoption. So far, that hasn’t materialized.
“On the surface there’s a lack of demand from crypto users for PYUSD when other alternatives exist (might be due to Paypal targeting a different demographic),” Nansen said.
FTX crypto exchange reports data breach involving claims agent Kroll
Defunct crypto exchange FTX has announced a cybersecurity breach involving its bankruptcy case claims agent, Kroll, in which limited, nonsensitive customer data of specific claimants was exposed. FTX said it is actively overseeing the situation, assuring that account passwords, systems and funds remain unaffected.
The struggling crypto exchange utilized the X platform (formerly Twitter) on Aug. 25 to notify its customers, creditors and the public about a cybersecurity breach involving its claims agent, Kroll. The breach has resulted in the exposure of nonsensitive customer data from specific claimants linked to the ongoing bankruptcy case.
FTX has stated that Kroll is presently informing the individuals impacted by the cybersecurity event about the steps they can take for their protection. The crypto exchange in bankruptcy clarified that its account passwords and systems remain secure.
“The incident occurred at Kroll, and Kroll is notifying affected individuals directly with measures that customers can take to protect themselves. FTX account passwords were not maintained by Kroll, and FTX’s own systems were not affected.”
Furthermore, the FTX debtors have initiated communication with Kroll and are diligently overseeing the unfolding situation. Kroll has informed the debtors that it has swiftly controlled and addressed the incident. Customers are advised to exercise vigilance against potential fraudulent and scam emails posing as entities involved in bankruptcy proceedings.
A friend just received a phishing email to the email associated with their FTX account. pic.twitter.com/cWy3ykN4B3
— ZachXBT (@zachxbt) August 25, 2023
Meanwhile, blockchain investigator ZachXBT reported that FTX clients are already receiving fraudulent emails, and the personal information of customers has been compromised.
Celsius Network, a crypto lending platform facing bankruptcy, experienced a data breach resulting in the exposure of its email records. This breach has had a notable impact on the ongoing bankruptcy reorganization process. In the meantime, FTX has enlisted Galaxy Digital, led by Mike Novogratz, to assist in managing its selling, staking and hedging endeavors. This partnership aims to bolster FTX’s efforts to mitigate risks linked to market volatility and optimize the returns from its Bitcoin (BTC) holdings.
PEPE plunges as strange token movements spark fears of rug pull
The price of the frog-themed memecoin Pepecoin plunged nearly 15% after changes to a multisig wallet and token transfers ignited fears of a “rug pull” by its developers.
The allegations — as well as the negative price action — came as $16 million worth of PEPE tokens were sent from the developers’ multisig wallet to various crypto exchanges on Aug. 24.
$PEPE Dev Wallet Sends $15M to Binance, OKX, and Bybit.
Only hours ago the PEPE Multi-Sig wallet undergoes unusual changes and transactions. Many fear a potential “rug pull.”
The PEPE multi-sig wallet sent over $15M worth of PEPE to three major centralized exchanges and one… pic.twitter.com/xgGjhROILE
— MANDO CT (@XMaximist) August 25, 2023
According to data from blockchain custody app Safe Global, the wallet address transferred 16 trillion PEPE tokens — approximately 3.8% of the total supply — to three exchanges and an unverified wallet address.
Following the transfer of the 16 trillion PEPE tokens to exchanges, the developers made a curious change to the team’s multisig wallet, which at the time of publication still contained $10 million worth of PEPE.
Data from Etherscan shows that the wallet now only requires two out of eight signatures — formerly, it required five of eight — to sign off on whether or not the wallet should make transfers.
PEPE le plunge pic.twitter.com/rdwYKgORkP
— Messari (@MessariCrypto) August 24, 2023
Notably, the transfer of funds marked the first time that PEPE tokens had ever been sent from the project’s multisig wallet to exchanges.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.