PayPal is the world’s largest online payment company (NASDAQ: PYPL) In a recent policy update, Bitmain revealed that it will not offer protection to users for tokens worth more than $10,000.
One media outlet reported that the update to PayPal’s website was made in secret on March 21, 2019. Note:. The policy is reversed, and buyers and sellers are exposed to increased risk in dealing with NFTs.
The new PayPal exclude NFT sales If the transaction exceeds $10,000, you will be covered. Under this threshold, those who meet all the other requirements will be eligible for coverage “unless the purchaser claims that it was an unauthorized transaction.”
Paypal Also removed from the Purchase Protection Program all NFT transactions regardless of value.
A spokesperson from the company explained that the change was due to the high-risk nature of the NFT industry.
The uncertainty surrounding proof of Order [fulfillment] We are no longer protecting buyers and we have limited seller protection in the NFTs industry due to other factors.
NFT purchasers who paid via PayPal for tokens which did not meet the advertisement or were never delivered could receive a refund. Sellers that lost money on the transaction can get a refund. payment disputes Or sham requests for refunds will also be reimbursed.
PayPal’s blow comes as NFT volume is regaining momentum after an abrupt drop in 2023. Crypto Slam Data Shown Below Since October, as the digital currency market grew in strength, the stock market began to recover. The trading volume, however, has decreased since the beginning of this year.
PayPal’s statement also indicates that the company is cooling down its interest in NFTs, after several attempts in the last two years to become an ally. It was announced last year that it would be launching a new NFT in the coming months. Patents are available for purchase The USPTO is working on a NFT market that will list tokens for art, music and event tickets as well as images, deeds of property, etc.
The company has failed to invest in NFT as much as it continues to do with other products on the blockchain, such Stablecoins Digital currencies are a new type of currency.
Luke Rohenaz on micropayments, NFT and digital marketing with Luke Rohenaz
Are you new to Blockchain? CoinGeek has a great guide to blockchain. Learn Blockchain in Beginner’s Terms The ultimate guide for learning more about Blockchain technology.