Crypto Users Question PayPal’s $1M Bitcoin Sweepstakes, Fearing Marketing Gimmick - Crypto Economy

TL;DR

• PayPal launched a $1.386 million Bitcoin sweepstakes active through December 21, offering 1,008 weekly prizes for U.S. users.
• The program grants one entry for every minimum $1 purchase of eligible cryptocurrencies and allows free participation through mailed postcards.
• The sweepstakes will award prizes of $100,000, $10,000, and $500 in BTC as part of the company’s broader crypto expansion.

PayPal is rolling out a campaign designed to draw users into its crypto ecosystem during the year-end season.

The company launched a $1.386 million Bitcoin sweepstakes aimed at U.S. residents aged 18 and older, using a mechanism that combines internal crypto purchases with a free mail-in option. The program will run until December 21 and distribute 1,008 prizes across five weekly periods.


The rules specify that each minimum $1 purchase of eligible cryptocurrencies within PayPal —Bitcoin, Ethereum, Solana, Litecoin, Chainlink, and Bitcoin Cash— grants one entry, capped at ten per week. PYUSD is excluded to avoid regulatory issues that prevent tying stablecoins directly to financial incentives.

PayPal offers an alternative entry method through handwritten postcards sent by mail, a requirement that ensures access without making a purchase and keeps the promotion compliant with U.S. sweepstakes regulations.


How Will PayPal’s Prizes Be Distributed?

The sweepstakes assigns 168 winners per week. The six top prizes award $100,000 in Bitcoin, thirty prizes award $10,000, and another 972 award $500. PayPal will notify winners by email within ten days of each draw and will apply stricter identity checks for higher-tier prizes. Funds will be deposited directly into PayPal accounts in BTC.

The announcement sparked doubts among parts of the crypto community. Some users believed the official post on X might be a scam attempt due to its promotional tone, although the initiative is verified and listed on PayPal’s official site. Even so, no one publicly reported receiving a prize during the first ten days.


The program shows that PayPal is stepping up its crypto strategy. The company enabled buying and selling of cryptocurrencies in 2020, introduced crypto-based payments in 2021, and launched its PYUSD stablecoin in 2023, issued by Paxos.

As of today, PYUSD has a market cap of roughly $3.77 billion and fits into Paxos’s expansion plan, which recently included the acquisition of Fordefi for more than $100 million to strengthen its custody infrastructure.