PayPal Announces That Its Protection Program Will Not Cover NFT Transactions
With effect from May 20, the purchase protection program of payments giant PayPal will no longer cover purchases of non-fungible tokens (NFTs).
According to a recent declaration made by PayPal, the company has decided to change its protection program in a way that would not cover NFTs or payments made via third-party platforms utilizing the PayPal Balance.
The changes we are making to PayPal’s Seller Protection Program will not cover non-fungible tokens (NFTs) if the transaction amount is $10,000.01 USD or more (or the same amount in the local currency at the time of the transaction); $10,000.00 USD or less (or the same amount in the local currency at the time of the transaction); unless the buyer claims it was an unauthorized transaction and the transaction meets all the other requirements. One example is PayPal.
It has been a long-term goal of PayPal to include NFTs into its platform so that customers may purchase, sell, and hold NFTs without ever leaving the PayPal interface. This action by PayPal shows that the company is eager to meet the needs of the NFT business, which is seeing rapid growth.
The amount of NFT sales on Monday was $35,628,790, a 24% decrease over the previous 24 hours. According to CryptoSlam, the number of transactions increased by 9% and the number of buyers by 3%, while the number of sellers decreased by 1%. The sales of half of the top ten collections showed an increase. The sale of Bored Ape Yacht Club green coins surged at a faster rate than any other.
Artists and high-end companies were able to charge millions of dollars in 2021 for digital collectibles supplied as NFTs. The excitement and discussion around NFTs seem to have subsided.
It was announced in January that GameStop had closed its NFT marketplace, indicating its departure from the cryptocurrency industry. Firm representatives released a statement on the site explaining the move, citing “the continuous regulatory uncertainties of the crypto industry” as the main factor.
NFT trading has decreased for more than a year. According to Statista’s data, fewer wallets are actively trading NFTs.
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