Paxful Delists Ethereum Citing Merge as Reason
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Peer-to-peer cryptocurrency exchange Paxful, based in New York, has stated that it will remove Ethereum from its platform. Ray Youssef, the CEO of Paxful, made the statement via email and then on social media. He said that the latest improvements to the token had turned it into a “digital form of fiat.”
One of the primary drivers of this decision, according to Youssef, was Ethereum’s switch from a proof-of-work to a proof-of-stake consensus process. Bitcoin also uses a proof-of-work consensus mechanism. Proof-of-work is the “innovation that makes Bitcoin the only honest money there is,” according to Youssef.
The decision was also influenced by Ethereum becoming more centralized as a result of the change in consensus. According to Youssef, Ethereum is now run by a small team and will eventually develop into a permissioned network.
Youssef also discussed tokenization and how scammers have used Ethereum as a platform to conduct crimes. He stated:
“The tokens that ETH has spawned have been scams that have robbed people of billions.”
Youssef added that Paxful always does “the right thing,” even if it means losing money for the business.
Ethereum Still Remains on Paxful, Only to a Minimal degree: Paxful CEO
On social media, Youssef’s remarks elicited a range of responses, some of which criticized the reasoning for his choice. When asked if the exchange will switch to exclusively accepting Bitcoin, Youssef responded that stablecoins like USDC and USDT that were created on top of Ethereum had real-world applications, and they could not completely remove Ethereum from the platform because customers still had to pay transaction fees. Youssef claims that 94% of transactions on Paxful solely include bitcoin.
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