Peer-to-peer trading platform Paxful has taken the shocking decision to remove Ether (ETH) from its marketplace. Paxful CEO Ray Youssef offered several reasons for this choice, including the implications of the Ethereum blockchain’s recent switch to Proof of Stake.
Paxful breaks away from Ether
Popular platform for peer-to-peer cryptocurrency exchange, Paxful will no longer host Ether (ETH) on its marketplace. This decision was voiced on Twitter by Paxful CEO Ray Youssef:
“We finally kicked Ethereum out of our marketplace. 11.6 million humans better protected. Integrity before revenue 🤝🏽 Who’s next? “.
We finally kicked #ethereum off our marketplace. 11.6m humans safer. Integrity over revenue 🤝🏽 Who is next? pic.twitter.com/JTJXa5RYJ8
— Ray Youssef (@raypaxful) December 21, 2022
In a text associated with his tweet, Ray Youssef explains the reason why such a decision was taken:
“The biggest problem in the world is economic apartheid. It is the root of all human suffering. I want to see a world where Bitcoin frees billions of people held back by this evil system, especially the needlessly harmed people who live in the Global South. This is why I created Paxful – to accomplish this MISSION. That’s what really drives me, it comes from the heart, and it’s personal to me. »
According to him, the only way to solve the problem he raises would therefore be to use Bitcoin. Thus, other cryptocurrencies (such as Ether in particular) would not have it and would be decoys that would slow Bitcoin’s progress with the masses.
Ray Youssef adds that removing Ether from Paxful is the result of 3 major concerns around the Ethereum ecosystem :
- Since Ethereum’s move from proof-of-work to proof-of-stake, ETH is nothing more than a digital form of fiat currency: “proof of work is the innovation that makes bitcoin the only honest currency there is” ;
- The Ethereum blockchain is controlled by a small group of people and is therefore not decentralized;
- Ethereum ecosystem tokens have “spawned scams that stole billions of dollars from people”.
However, the platform still hosts USDT and USDC stablecoins, both of which are partly “hosted” on the Ethereum blockchain, in addition to being anchored to a fiat currency, in this case the US dollar. If we understand Ray Youssef’s vision correctly, these highly centralized stablecoins should therefore meet the same fate as ETH on Paxful. It would seem not.
On Twitter, he expressed himself on this subject, stating that “stablecoins are indispensable for real-world use cases”.
Since the fall of FTX, Ray Youssef has been a strong advocate for individuals to take care of storage and their cryptocurrency themselves and urged them to “never keep their savings on an exchange, including Paxful”.
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