Once again, I have to point out that PayPal did *exactly* the same thing when they first started -- they put a cash credit into the account of everyone who signed up. At first I think the amount was $15.00, and then was dropped over time to $10.00, and then $5.00 and finally eventually eliminated. Funny how no one questioned PayPal when they made this type of offer when they first started. For that matter, I don't remember anyone scrutinizing PayPal this way when they were first trying to get off the ground. People just rushed in to participate, get their free cash sign-up bonus, and start accepting PayPal for their auctions. Of course, the internet was a more innocent place at that time, and primarily confirmed to the US of A (at first PayPal only offered services to those in the US).
 
As for them operating out of "a Ralph's Grocery Store someplace in California" that is a rumor that was posted by one person (which Ralph's Grocery Store? The rumor doesn't say...) and has not been substantiated by anyone else that I can find, and is simply being repeated parrot-fashion by everyone else on the internet, including the author of this article. C'mon, with the easy availability of anonymous email addresses these days, do you really think these guys would be using an address that could be easily traced to a "Ralph's Grocery Store someplace in California" -- whether they were genuine or a scam (particularly if it were a scam)?
 
Finally, does it surprise anyone that "members of the eBay community" are voicing concern over this potential competitor to PayPal? After all, eBay does own PayPal.
 
We don't have enough information on GreenZap to know what their story is at this point, and this article certainly doesn't offer any.
 
-- JR
 
----- Original Message -----
Sent: Monday, May 02, 2005 13:45
Subject: [MOPO] GreenZap Raises Skepticism of Some eBay Community Members

GreenZap Raises Skepticism of Some eBay Community
Members
May 02, 2005

GreenZap.com issued a press release on April 11, 2005,
to announce its new online payment service, which it
is positioning as a competitor to eBay's PayPal
service. GreenZap said during the pre-launch
registration phase, it is putting $25 in users
accounts for signing up, and skeptics are raising
questions about the offer.

According to an interview with Greenzap's CEO on
eAuction Air's radio program, users will not be able
to cash out the $25, it can only be applied toward
purchases made using GreenZap, which has not yet
launched. Michael Donahue interviewed the CEO, Alex
Sonkin, last week on his Internet radio program
eAuction Air. You can listen to the two-part interview
at http://www.eauctionair.com (4/24/05 edition).

Some skeptics have created websites
(http://greenzapscam.com) and started threads on
discussion boards
(http://freeauctionscripts.com/community/ecommerce4839-0-asc-0.html
and
http://www.otwa.com/community/showthread.php?t=28926)
raising questions about the service, which says it
will launch in June.

This is not the first time eBay community members have
turned a skeptical eye on pre-launch services; earlier
this year, AuctionBytes wrote about user reaction to
Wagglepop
(http://www.auctionbytes.com/cab/abn/y05/m02/i23/s01),
and in 2001, AuctionBytes wrote about an auction site
that apparently never made it off the ground
(http://auctionbytes.com/cab/abn/y01/m07/i06/s01).

Greenzap is headquartered in La Jolla, California, but
according to Sonkin, the company accepts mail at
"Ralph's Grocery Store" while they are in the process
of moving into a new building located east of La
Jolla.





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