• Paxful is delisting Ethereum due to the move to proof-of-stake (PoS), lack of decentralization, and the dissemination of scams in its ecosystem.
• The official delisting will take place by 12:00 UTC, December 22nd.
• Paxful CEO Ray Youssef believes that proof-of-work (PoW) is the innovation in Bitcoin and what enables it to be “the only honest money there is.”
Paxful, the peer-to-peer cryptocurrency trading platform, has announced that it will be delisting Ethereum from its marketplace. In a tweet, the exchange’s CEO Ray Youssef called on fellow exchange runners to follow suit, claiming that the move was necessary to protect users from the risks associated with trading Ethereum.
The delisting of Ethereum from Paxful’s platform is due to three overarching reasons. The first is Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS), which has been deemed by Youssef to have rendered Ethereum “essentially a digital form of fiat.” Youssef believes that PoW is the innovation in Bitcoin and what makes it “the only honest money there is.”
The second reason is Ethereum’s lack of decentralization. Youssef claims that a small group of insiders still has the power to exert an enormous influence on the cryptocurrency project. This lack of decentralization makes it particularly vulnerable to malicious actors.
The final reason for delisting Ethereum from Paxful’s platform is the increasing dissemination of scams in its ecosystem. Youssef believes that the prevalence of tokenization has opened up the possibility for individuals to be “robbed of billions” in cryptocurrency. He believes that these scams have “stolen valuable momentum away from Bitcoin” and “cost us years on our mission.”
The official delisting of Ethereum from Paxful’s platform will take place by 12:00 UTC on December 22nd. Before the delisting, Paxful will still maintain stablecoins up for trades, as Youssef believes they have “real use cases.” In the meantime, Youssef has called on other exchange runners to follow his lead in delisting Ethereum, claiming that their responsibility to protect their users is greater than ever before.