<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/05/28193659/pUSDC-USDC-on-PulseChain-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/05/28193659/pUSDC-USDC-on-PulseChain-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/05/28193659/pUSDC-USDC-on-PulseChain-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/05/28193659/pUSDC-USDC-on-PulseChain.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/05/28193659/pUSDC-USDC-on-PulseChain.webp" alt="pUSDC" class="wp-image-2745"/></figure>



In the early hours of <a href="https://www.thecoinzone.com/pulsechain/pulsechain-official-guide" target="_blank" rel="noreferrer noopener">PulseChain</a>, a handful of users lost hundreds of thousands of dollars instantly. 



These users lost money because they either provided liquidity for, or bought, the wrong stablecoin. 



The stablecoin was pUSDC, a near-zero value stablecoin copy on PulseChain.



This article will help you understand pUSDC, so that you can avoid losing money on stupid mistakes.



<h2 class="wp-block-heading tablecontent">What is pUSDC?</h2>



pUSDC is a PRC20 on PulseChain which came into existence when the entire system-state of <a href="https://www.thecoinzone.com/blockchain/ethereum" target="_blank" rel="noreferrer noopener">Ethereum</a> was copied. 



It is the fork of USDC, a <a rel="noreferrer noopener" href="https://www.thecoinzone.com/stablecoins/fiat-backed-stablecoins" target="_blank">fiat-backed stablecoin</a> issued by Circle on the Ethereum blockchain.



The fundamental reason why the users above lost money is because they confused pUSDC for eUSDC, which is the bridge in USDC from Ethereum.



The <a href="https://www.thecoinzone.com/pulsechain/pulsex-contract-address/" data-wpil-monitor-id="909">contract address</a> for eUSDC, which is the version on PulseChain is: 0x15d38573d2feeb82e7ad5187ab8c1d52810b1f07



<h2 class="wp-block-heading tablecontent">Why did pUSDC Depeg from a Dollar?</h2>



The fundamental reason why pUSDC depegged from a dollar is because the coins are not redeemable for the underlying collateral. 



<figure class="wp-block-image aligncenter size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/05/28193725/pUSDC-Price-on-PulseChain-375x182.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/05/28193725/pUSDC-Price-on-PulseChain-662x320.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/05/28193725/pUSDC-Price-on-PulseChain-768x372.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/05/28193725/pUSDC-Price-on-PulseChain.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/05/28193725/pUSDC-Price-on-PulseChain.webp" alt="pUSDC Price" class="wp-image-2746"/><figcaption class="wp-element-caption"><a href="https://dexscreener.com/pulsechain/0x6444456960c3f95b5b408f4d9e00220643f06f94" target="_blank" rel="noreferrer noopener">DexScreener</a>: pUSDC price in first 10 days.</figcaption></figure>



<a href="https://www.thecoinzone.com/stablecoins/what-are-stablecoins" target="_blank" rel="noreferrer noopener">Stablecoins</a> are subject to price volatility just like any other token.



When users buy, the price goes up.



When they sell, the price goes down.



The fundamental reason why the prices maintain stability is because users are incentivized to buy the price up and redeem it for collateral. 



In the case of pUSDC, there is no collateral backing it.


<blockquote class="twitter-tweet">
I don’t know who needs to hear this, but stablecoin copies on <a href="https://x.com/hashtag/PulseChain?src=hash&amp;ref_src=twsrc^tfw">#PulseChain</a> won’t maintain their $1 peg. Anyone that sells coins on PulseX for pUSDC, pDAI, or pUSDT is rekt
— Crypto Coffee ⬣ (@CryptoCoffee369) <a href="https://twitter.com/CryptoCoffee369/status/1658141982978392064?ref_src=twsrc%5Etfw">May 15, 2023</a>
</blockquote>
<script async="" src="https://platform.twitter.com/widgets.js" charSet="utf-8"></script>


<h2 class="wp-block-heading tablecontent">USDC vs eUSDC vs pUSDC</h2>



USDC is a fiat-backed stablecoin, issued by Circle on multiple blockchains. It is one of the biggest stablecoins by market cap and other than a few temporary hiccups has been relatively reliable.



eUSDC on PulseChain is a wrapped version of USDC. It is created when users lock USDC in a pool on the <a href="https://www.thecoinzone.com/pulsechain/pulsechain-bridge-pulseramp" target="_blank" rel="noreferrer noopener">PulseChain Bridge</a> which in turn mints a wrapped version on PulseChain. The value of eUSDC is derived from its’ redeemability to real USDC on Ethereum.



pUSDC is simply a copy of the USDC token on Ethereum. It is not redeemable for anything and therefore depegged from a 1 USD.



<h2 class="wp-block-heading tablecontent">Don’t Buy or LP with pUSDC</h2>



This is not financial advice, but buying or LPing with pUSDC is not a good idea. 



Many users in the early days of PulseChain mistook pUSDC for eUSDC and lost their entire bag. 



For example, some users created <a href="https://www.thecoinzone.com/defi/liquidity-pools" target="_blank" rel="noreferrer noopener">liquidity pools</a> (i.e. PLS/pUSDC) under the assumption that pUSDC was $1. It was not.



Opportunistic users swooped in and essentially took their PLS at a 99%+ discount.



Another user traded Hex for pUSDC, thinking he was making a quick <a href="https://www.thecoinzone.com/defi/crypto-arbitrage" target="_blank" rel="noreferrer noopener">crypto arbitrage</a> profit.


<blockquote class="twitter-tweet">
❤???
This guy lost -$9,900 instantly.
He gave away 290,000 <a href="https://twitter.com/search?q=%24HEX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$HEX</a> for just $100 ?
DexScreener has trimmed this early data. Luckily, I saved it, so we never forget.
He thought he made millions of dollars... but he was trading into pUSDC ? <a href="https://t.co/IxhvHC28Du">pic.twitter.com/IxhvHC28Du</a>
— yourfriendSOMMI ❤️??? (@yourfriendSOMMI) <a href="https://twitter.com/yourfriendSOMMI/status/1658592308600934401?ref_src=twsrc%5Etfw">May 16, 2023</a>
</blockquote>


<h2 class="wp-block-heading tablecontent">The Bottom Line</h2>



Operating in the cryptocurrency space requires prudence. 



Many users thought they were geniuses, and quickly found out they made a fundamental mistake. 



Make sure you know the basics of any tokens you plan on interacting with.



And double check and triple check token addresses when making moves.

USDT vs USDC: Why Stablecoin Competition Is Now Won on Payments Rails

What Is MiCA and Why It's Reshaping Which Stablecoins Survive in Europe

Interest-Bearing Stablecoins vs. Banks: The $6 Trillion Battle.

Stablecoins Are Primed For Huge Growth in 2025: Here’s What You NEED To Know

What is pUSDC Stablecoin and Why Is It Under One Dollar?

pUSDC, not to be confused with bridged in eUSDC, is backed by nothing and is worthless.