It seems that the market is faced with yet another bit of FUD (fear, uncertainty, and doubt), this time from PayPal, breaching into the pockets of cryptocurrency enthusiasts. Or is there some mischief going around and about?
PayPal banning cryptocurrency purchases?
According to recent reports, PayPal has apparently been sending out emails to its clients warning users that as per their ‘Acceptable Use Policy’, cryptocurrency related activities must cease.
Granted, PayPal has been quite odd when it comes to cryptocurrencies and the bitcoin in general. However, another strange thing is that the payment service providing company established by Elon Musk and Peter Thiel has recently applied for a U.S patent related to Blockchain technology.
Well, guess what? The emails that users were supposedly receiving from PayPal are actually fake!
Thank you, Reddit.
According to a few Reddit users, the PayPal email is indeed fake, but how was it sent out on such a massive scale? Well, apparently it’s not so difficult for hackers to get access to user databases, in particular, the bitcointalk one. Then, the scammer just has to cross-reference these emails with another one and send out a bunch of fake mail posing as PayPal.
Now, obviously breaching into PayPal and sending out emails from their servers is near impossible. However, replacing an email address to read and look identical to an original one isn’t such a complicated feat. For example, @paypal.com and @paypai.com. Notice the letter ‘i’ at the end of the address?
But what is the point?
The email wasn’t soliciting information, asking to send money, disclose accounts, or to really even log in to PayPal through a false link. So, what is the point here exactly? To spread some fear and to smear PayPal’s image a bit. As you all may have noticed, current market conditions are not exactly ideal or close to what they were in December of 2017.
Verdict: deliberate attempt to tarnish the reputation of the cryptocurrency market in an attempt to drive its capitalization down.
But don’t worry. Didn’t have any effect on the industry thanks to being debunked alarmingly quick.