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Well, the account credentials would stay in the local client wouldn't they? There is no hosted web version of this (yet!) and no central server so there is no one to leak credentials to. The only receiver of the credentials would be your email provider, and you are already sending them that in your normal email client.

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Their fear was that the app was malware. It was surprisingly difficult to dispel the idea

It's a legitimate fear I think. The only fix I can see is to establish a trustworthy brand which can be hard for a relatively unknown entity.

The other option could be an app-password with gmail

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