Key Takeaways
- Paxful CEO states Ethereum network’s transition to PoS has turned Ether into a ‘digital form of fiat.’
- CEO claims that ETH thrives because of tokenization, with Ethereum-based tokens turning into “scams that have robbed people of billions.”
Leading peer-to-peer crypto marketplace Paxful has removed Ether(ETH) from its marketplace, citing the Ethereum network’s switch to proof-of-stake(PoS) validation from proof-of-work (PoW).
Making the official announcement via Twitter, Paxful Ceo Ray Youssef justified the move by citing three concerns. Ray stated that PoW is the ‘innovation that makes Bitcoin the only honest money there is,’ adding that Ethereum’s transition to PoS has turned ETH into a ‘digital form of fiat.’
Dwelling into more reasons behind removing ETH, the CEO added: “The tokens that ETH has spawned have been scams that robbed people of billions. They have stolen valuable momentum away from Bitcoin and cost us years on our mission.”
Youssef also criticised Ethereum for not being decentralized while also mentioning the increasing number of scams among the tokens that operate on the ETH blockchain. The Paxful CEO claims that ETH now thrives because of tokenization, with Ethereum-based tokens turning into “scams that have robbed people of billions.”
Ray, a strong advocate of Bitcoin, first hinted towards removing ETH from the platform on December 12. While replying to a tweet by software engineer Jeremy Garcia, Ray stated that ETH’s design is built on “a foundation of sand” instead of Bitcoin’s “foundation of granite.” “Revenue is nice, but integrity trumps all,” he added.
In the latest newsletter, he noted that he wanted to see “a world where Bitcoin frees billions of people held back by this evil system, especially those unnecessarily harmed living in the Global South.”
Responding to Twitter queries, Youssef added that Paxful would continue offering trade in stablecoins tether (USDT) and USD coin (USDC). When FTX imploded, Youssef had encouraged users to shift BTC holdings to self-custody storage.
Paxful, headquartered in New York, was founded in 2015 by Ray Youssef and Artur Schaback. Paxful added support for ETH in April last year while stating that Ethereum transactions take far less time than Bitcoin transactions, making ETH a top-tier cryptocurrency for people looking for speedy turnaround times.
