PayPal, the widely recognized digital payments giant, is making a significant change to its Buyer Protection Program. On its online platform, the company announced that, starting from May 20th, the program will no longer cover purchases of non-fungible tokens (NFTs). This change applies to NFT transactions above and below 10 thousand dollars, except in cases of unauthorized transactions that meet all other program criteria.
In the past, PayPal has played a role in the NFT ecosystem by allowing users to directly buy, sell, and hold these assets through their accounts. However, this shift in protection policy indicates a reevaluation of its involvement in this volatile market. Recently, the sales volume of NFTs has experienced a considerable decline, with a 24% reduction in the last 24 hours, according to data from CryptoSlam. This suggests that PayPal may be exercising caution in continuing to offer protection in this segment.
Alongside the changes in NFT coverage, PayPal is also expanding its operations in the cryptocurrency field. One example of this is the upcoming launch of PYUSD, a stablecoin pegged to the US dollar, in early 2023. By introducing this digital token, which provides a more stable option in the cryptocurrency market, PayPal aims to contrast with the volatility often associated with other types of cryptoassets.
Interest in NFTs reached its peak in 2021, when digital collectibles from renowned artists and luxury brands sold for millions of dollars. However, enthusiasm has waned in recent times, resulting in fewer conversations and transactions. This can be seen in the closure of GameStop’s NFT market in January this year, where the main reason cited for the withdrawal was “the ongoing regulatory uncertainty in the crypto space.”
Disclaimer: The opinions expressed in this article, by the author or any individuals mentioned, are solely for informational purposes and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Editor’s Choice: No related posts.
