Paxful drops Ethereum from its platform

Paxful CEO tells 11 million users that Bitcoin is ‘only honest money there is’

Paxful’s CEO, Ray Youssef, criticised Ethereum’s shift to proof-of-stake - Photo:Shutterstock

The global peer-to-peer trading platform Paxful has announced that it will no longer facilitate trading in Ethereum. 

Paxful’s CEO, Ray Youssef, said in a statement to users that his decision was driven by a desire to put “integrity over profits”. 

Youssef cited Ethereum’s recent shift from a proof-of-work to a proof-of-stake mechanism as a key factor influencing his decision. He argued that the shift towards staking had rendered Ethereum into “essentially a digital form of fiat” and stressed that the PoW method is “the innovation that makes Bitcoin the only honest money there is.”  

The Paxful CEO also complained that Ethereum was not decentralised but actually “controlled by a small group of people”, and added: “The tokens that ETH has spawned have been scams that have robbed people of billions. They have stolen valuable momentum away from Bitcoin and cost us years on our mission.”

Crypto Winter weighs on investor sentiment

The total capitalisation of the cryptocurrency market has more than halved since the start of 2022, falling by $1.2trn, with investors moving out of more speculative investments as interest rates rose and inflation surged. 

A number of high profile bankruptcies further undermined confidence in the cryptocurrency sector, both from institutions and retail investors. Although the problems that hit the likes of Three Arrows Capital, Celsius and Terra Labs all weighed on sentiment, the collapse of FTX in November came as the largest shock. 

The company began November as the second-largest crypto exchange in the world and finished the month as one of the largest and fastest cases of corporate collapse and bankruptcy in US history.

Alluding to these controversies, Youssef said that the cryptocurrency industry “is under attack right now” and that the pressure to protect users was “greater than ever before”. 

Neither the Ethereum Foundation organisation nor Ethereum’s most prominent co-founder, Vitalik Buterin, have commented on Paxful’s decision.

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