Just a couple days ago a rumor spread like wild fire. According to TechCrunch, Palm paid an app developer to write an app for the webOS platform. Now we have word from another source – John Paczkowski at All Things Digital – about that situation. So we bring you both sides of the story so you can judge for yourself.

Sarah Lacy from TechCrunch Interviewed the founders of CitySourced, who are developing an App for the Palm Pre that allows you to report nasty things like potholes, graffiti, trash, snow removal, etc., to your city hall. Sounds like a cool app, right? Well yes, but what really made headlines were the answers from CitySourced to Sarah: “Question one: Palm is really paying companies to write apps for the Pre? Yes. How much? All I got despite truly obnoxious questioning was under $500,000.”

Now the second part to this mess is from John Paczkowski at All Things Digital. John contacted some folks over at Palm, and according to them, “Palm isn’t paying developers to write apps for webOS.” One source inside Palm dismissed such idea as “rubbish.” Three others in a “position to know” said they’d “never heard of such an incentive.” John even got in touch with some app developers, and they said none have been approached by Palm with such an offer or heard of anyone who has been approached. He did not get any answers from CitySourced for comments or clarification on this matter.

[Via AllThingsD]