Etheress Ethereum Exchange Looks Rather Dodgy

UPDATE: Read the updated explanation over here.

An interesting new exchange has launched, which will let users sell Ethereum for PayPal. Although such a service is quite risky for the people accepting the PayPal payment, they are using a third-party payment processor which does not have the best of reputations in the digital currency ecosystem. Keeping in mind how the current fee is just US$1.50 per transaction, there seems to be a huge market waiting for the Etheress team.

Also read: Intercollegiate Trivia on Blockchain and Bitcoin Has Started

Etheress Buys Ethereum For PayPal

TheMerkle_Etheress Warning Ethereum Ether

Getting digital currency into the hands of as many people as possible is the primary objective for any exchange platform. Offering more convenient payment methods will play an integral role in this process. For some reason, a lot of consumers want to obtain digital currency with PayPal – or sell their currency for PayPal- even though this money transfer service is subject to high fraud rates and chargebacks.

Etheress has decided to take the gamble and venture into this market, by launching a new exchange platform where users can sell Ethereum for PayPal. Rather than handling the payments themselves, however, they opted to work together with The Virtual World Exchange, which will take all risks associated with sending out the PayPal payments.

Using Etheress is not free of charge, though, as there is currently a US$1.50 fee. Do keep in mind this fee is a promotional effort only, and will change to a percentage fee in the future. The minimum order amount is 10 ETH – worth US$100-ish at the time of writing – and the maximum order value is 5,000 ETH – worth close to US$53,000.

What makes Etheress quite appealing to users is how the platform does not require personal documentation for any of the orders placed, although they do require Paypal accounts to be verified before making a purchase. Whether or not this could become a risk factor in due time, remains to be seen, as it is questionable these type of services can carry on for long with such a shady business model.

Moreover, Etheress welcomes users from all over the world, as PayPal is a very common payment method across more than 100 countries around the world. Transactions should be completed instantly, although new users might face a one-time delay of up to five hours. Users can sell ETH based on the current prices in USD, GBP, EUR, and CAD.

Users will need to remain careful when dealing with these types of platforms, though. It is not uncommon to see similar services pop up for different digital currencies, and most of these platforms turn out to be complete scams. Always do your own research before sending your funds off to a third party.

Source: Reddit

Images credit 1,2

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  • Stef Cunning

    This article is kinda wrong. I sold ETH at Etheress, that means that we
    can sell Ether there and get paypal USD for that, not the other way
    around.
    They sent me the paypal usd payment via the processor “Virtual World Exchange” so we are on the safe side.