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Peer-to-Peer Crypto Marketplace Paxful Removes ETH From Platform

Peer-to-Peer Crypto Marketplace Paxful Removes ETH From Platform

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.

ETH has basically become a digital form of fiat thanks to its switch to a proof-of-stake validating mechanism, argued Youssef.

ETH has basically become a digital form of fiat thanks to its switch to a proof-of-stake validating mechanism, argued Youssef.

AccessTimeIconDec 21, 2022, 1:19 PM
Updated May 9, 2023, 4:04 AM

"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.




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Jamie Crawley is a CoinDesk news reporter based in London.