Paxful has removed Ether from its marketplace, citing a number of concerns around the world’s second-largest cryptocurrency by market capitalization.
Paxful CEO Ray Youssef announced the move in a message to some 11.6 million users of the platform, which he subsequently shared on Twitter.
Ethereum’s switch from proof-of-work to proof-of-stake consensus was the first reason given for the move. Youssef explained that PoW is the ‘innovation that makes Bitcoin the only honest money there is’ and that Ethereum’s transition to PoS has turned ETH into a ‘digital form of fiat.
Youssef also criticized Ethereum for not being decentralized and cited the protocol’s ability to allow the tokenization of assets as a driver of scams and fraud across the cryptocurrency ecosystem.
Paxful’s CEO has also been a vocal advocate for Bitcoin and cryptocurrency self-custody in the wake of FTX’s collapse in November 2022. Youssef implored cryptocurrency users to shift BTC holdings to self-custody storage, with Paxful users also encouraged to follow suit.
