Beginning May 20th of this year, PayPal (Nasdaq: PYPL) will remove non-fungible tokens (NFTs) from its Purchase Protection and Seller Protection Programs, the payment service giant announced in a policy update. This will leave those selling and buying NFTs without safeguards against fraudulent transactions and chargebacks.
The move has been called ‘surprising’ by some crypto publications as PayPal was once very deep into NFTs, even exploring direct sales and holding NFTs on its platform. The company even filed an NFT-related patent in 2022, which aimed to streamline NFT trading by allowing fractional ownership as well as integrating with third-party service providers.
But of course, we all know what happened to NFTs.
But this doesn’t mean that PayPal has completely given up on the sector, the company did launch PYUSD, a dollar-pegged stablecoin last year. PYUSD’s value peaked at a hefty $300 million market capitalization before dropping to $200 million.
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