Recently, PayPal, the online payments giant, quietly revised its buyer and seller protections for transactions involving non-fungible tokens (NFTs).
According to the company's latest terms of service update, NFT purchases will no longer be covered by PayPal's buyer protection policy as of May 20, 2024.
Additionally, PayPal will also discontinue seller protection for NFT transactions worth more than $10,000. According to a company spokesperson, due to âuncertaintyâ in the NFT industry. This decision could impact the NFT market, making buyers cautious and sellers difficult to sell NFTs, leading to a decrease in trading volume and market value.
Although the notice about stopping providing protection for some NFT-related transactions has been posted on PayPal's website since March 21, to date, these changes are still not widely known.
PayPal's narrowing of its NFT protection policy is a sign of the potential risks associated with the nascent NFT market. Investors and users should consider carefully before participating in this market and take precautions to protect themselves from fraudulent activities.