Peer-to-Peer Crypto Marketplace Paxful Removes ETH From Platform
ETH has basically become a digital form of fiat thanks to its switch to a proof-of-stake validating mechanism, argued Youssef.
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
"Revenue is nice, but integrity trumps all," said Ray Youssef, announcing ether's (ETH) removal from the marketplace he founded and runs.
Among the reasons for the move noted by Youssef was the Ethereum network's switch to proof-of-stake validation from proof-of-work.
"Proof-of-work is the innovation that makes bitcoin (BTC) the only honest money there is, whereas proof-of-stake has rendered ETH essentially a digital form of fiat," he claimed. ETH is "controlled by a small number of people and one day you will need permission to use it," he continued.
Youssef also cited the prevalence of scams among the tokens that operate on the Ethereum blockchain. Responding to questions on Twitter, Youssef said Paxful will continue offering trade in stablecoins tether (USDT) and USD coin (USDC), but didn't seem too enthused about it.
Paxful is a peer-to-peer marketplace that is popular in Africa, a region Youssef believes will see mass adoption of bitcoin due its financial inclusionary potential.
"In short, our industry is under attack right now, which means our responsibility to protect our users is greater than ever before," concluded Youssef.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.