Paxful Delists Ethereum Citing Decentralization, PoS, and Scams

• Paxful CEO Ray Youssef has announced that his P2P cryptocurrency trading platform is delisting Ethereum.
• The decision was made due to Ethereum’s move to proof-of-stake, a lack of decentralization, and the prevalence of scams in its ecosystem.
• Ethereum will be officially off the platform by 12:00 UTC, December 22. Paxful will maintain stablecoins up for trades.

Paxful, a peer-to-peer cryptocurrency trading platform, is delisting Ethereum. Ray Youssef, CEO of Paxful, announced the news via Twitter on Wednesday, confirming the decision he had hinted at ten days prior. In a screenshot of Youssef’s statement to clients, he outlined the three main reasons he chose to remove ETH from his P2P exchange.

The first reason was Ethereum’s move to a proof-of-stake (PoS) consensus mechanism, which Youssef argued has rendered ETH essentially a digital form of fiat. PoW is what enables Bitcoin to be “the only honest money there is,” he claimed. Youssef then moved on to the lack of decentralization in Ethereum, denouncing the small group of insiders who manage to exert enormous influence on the cryptocurrency project to this day. Lastly, the CEO of Paxful delved into the prevalence of scams in the Ethereum ecosystem. Youssef explained that while there are real use cases for ETH, such as credit and lending, it has become a haven for scams that have robbed people of billions.

The official date for Ethereum to be removed from the platform is 12:00 UTC, December 22. Paxful will continue to maintain stablecoins up for trades, however, as Youssef believes they have “real use cases.” He also called on other exchange runners to follow suit in his tweet, emphasizing the importance of integrity over revenue.