PayPal will not protect NFT sales over $10,000
Buyers of non-fungible tokens (NFTs) using PayPal will no longer be protected for large sales, the California-based global fintech has announced.
Starting March 21, NFT sales over $10,000 will no longer be eligible for Seller Protection, per PayPal’s updated policy. The rule protects seller transactions from chargebacks, reversals, and fees.
NFTs, which are artificially rare digital objects created using blockchain technology to make unique versions of anything that can be digitized, have become the latest craze for celebrities including Snoop Dogg and the former quarterback of the New England Patriots Tom Brady.
Read more: Tom Brady is now competing with Michael Jordan to set off-court business records
Brady’s prowess as CEO and brand power came in December, when Autograph launched an auction of nearly 17,000 NFTs. “Live Forever: The Tom Brady Origins Collection” sold out in minutes, with fans, collectors and speculators grabbing certified footage starting at $80 each.
Julian Lennon has turned some memories of his father, John Lennon, and Paul McCartney into NFT, presenting them to Beatles fans as an opportunity to “own a piece of music history”.
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In December, former Black Sabbath frontman Ozzy Osbourne announced the launch of an NFT collection called CryptoBatz, a reference to the 1982 concert where he bit his head off a bat.
Read more: NFTs target the collector market with avatars and celebrities
The NFT Collection features 9,666 unique digital bats that can “bite” other collectible NFTs, including avatars from the Bored Ape Yacht Club, SupDucks, and CryptoToadz.
The Seller Protection Program, as the name suggests, gives merchants a way to fight back if a buyer falsely claims they haven’t received an item or if payment is made through a hacked account. NFTs have been linked to fraud.
PayPal did not explain in the announcement why it is making the change. He only said that if PayPal users refuse, they must close their PayPal account before the effective date.