Paxful, New York-based peer-to-peer ( P2P) cryptocurrency exchange will remove Ethereum trading from its platform on December 22nd. The company’s CEO, Ray Youssef, gave various reasons for the decision. Youssef also said that tokens built on Ethereum are largely a scam.
P2P Exchange Paxful Drops Ethereum
Paxful, a New York-based peer-to-peer cryptocurrency exchange, has announced that it is dropping Ethereum from its platform. announcement was made by Paxful CEO Ray Youssef via email and social networks. He said the recent changes the token has undergone have turned it into a “digital form of fiat currency.”
Youssef explained that one of his first reasons behind this action had to do with the pivot that Ethereum performed, proving the kind of proof Bitcoin also implemented. Of-work consensus mechanism to proof-of-stake mechanism. Youssef explained that Proof of Work is “the innovation that makes Bitcoin the only honest money.”
Another reason behind this decision has to do with the increased centralization of Ethereum after this consensus change. Youssef said Ethereum is currently controlled by a small number of people and will eventually become a permissioned network.
Fraud and Criticism
And we also touched on how the platform can be abused to commit fraud using Ethereum. He said:
ETH generated tokens are a scam that has robbed billions of people.
Plus, Youssef says Paxful always does the “right thing.”
Youssef’s remarks sparked mixed reactions on social media, with some users criticizing the logic behind the decision. When asked if the exchange will be Bitcoin-only, Youssef said that stablecoins issued on top of Ethereum, such as USDC and USDT, are actually It is used and Ethereum cannot be completely removed from the platform. Because users have to pay transaction fees. However, according to Youssef, 94% of his transactions on Paxful involve only Bitcoin.
Paxful is one of the exchanges that suspended service to Venezuelan users in September 2020 due to a series of sanctions imposed by the US government. The exchange reports he has $1.1 billion in trading volume for the first half of 2020.
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