Ethereum (ETH) lacks integrity says Paxful
Through an email sent to all Paxful users, Ray Youssef, the CEO of the platform announced a very strange decision: as of December 22, Ethereum (ETH) will be removed from the platform. Until then, this peer-to-peer trading platform offered its users the trading of only three cryptos: Bitcoin, Ethereum and USDT. But then why delist the second largest cryptocurrency?
The CEO of Paxful believes that the Ethereum cryptocurrency has lost all integrity. Ray Youssef accuses Ethereum (ETH) of misrepresenting the crypto’s original philosophy and compromising the industry’s momentum. There are three main grievances with ETH!
First, Ray blames Ethereum (ETH) for its new mining protocol. Indeed, last September, Ethereum switched from proof of work to proof of stake to reduce its energy consumption. If this passage rejoices the environmental organizations like GreenPeace, it is not the case of the CEO of Paxful.
For Ray Youssef, the proof of stake makes Ethereum a digital form of fiat currency. What makes crypto an honest innovation is proof of work, he said.
Second, the Paxful CEO accuses the Ethereum cryptocurrency of being centralized. Indeed, unlike Bitcoin, which is completely decentralized, Ethereum (ETH) is controlled by a group of people. Ray Youssef fears that one day, the group managing Ethereum will impose restrictions on its users, as is already the case for CBDCs controlled by central banks.
Finally, the CEO of the Paxful platform considers Ethereum (ETH) as a machine for producing scams. Indeed, thanks to tokenization, Ethereum (ETH) facilitates the creation of several tokens. Unfortunately, these tokens include scams that have caused investors to lose billions. These scams tarnish the reputation of the crypto and slow down the momentum of Bitcoin, laments Ray Youssef.
Loss of revenue for Paxful and strong reactions from the Ethereum community
Paxful’s CEO is under no illusion that Ethereum’s withdrawal will cause his platform to lose money. Nevertheless, Ray Youssef believes that the emergence of the industry and the protection of its users are worth more than the financial gains.