PayPal, the renowned digital payments giant, is making a significant alteration to its Buyer Protection Program. On its online platform, the company announced that starting from May 20th, purchases of non-fungible tokens (NFTs) will no longer be covered by the program. This change applies to both NFTs with transactions exceeding $10,000 and those below this value, 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 change in protection policy indicates a reassessment of its involvement in this volatile market. The recent decline in NFT sales volume may have influenced PayPal’s decision. According to CryptoSlam data, there has been a 24% decrease in sales volume in the last 24 hours, suggesting PayPal’s cautious approach towards offering protection in this segment.
Aside from the changes in NFT coverage, PayPal is continuing to expand its operations in the cryptocurrency field. One of their upcoming innovations is the launch of the stablecoin PYUSD in early 2023. This digital token, which is pegged to the US dollar, demonstrates the company’s commitment to providing a more stable option in the cryptocurrency market. This stands in contrast to 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 were selling for millions of dollars. However, enthusiasm has waned, resulting in less discussion and fewer transactions. This is evident from the closure of GameStop’s NFT market in January this year, with the company citing “ongoing regulatory uncertainty in the crypto space” as the primary reason for its withdrawal from the market.
Disclaimer: The opinions expressed in this article, whether by the author or anyone mentioned, are solely for informational purposes and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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