There are always concerns among crypto users when major projects introduce crucial changes. For example, many expected Ethereum to split after the switch to proof-of-stake, but that hasn’t happened. However, Paxful has removed the currency from its P2P marketplace over that change, among other reasons.
Paxful Cans Ethereum Support
It is always unfortunate when peer-to-peer crypto marketplaces prevent certain currencies from being traded. In some cases, that choice can be defended due to abandoned projects or other problematic behavior by developers. However, Ethereum is the second-largest cryptocurrency by market cap. It is also the most prolific network for dApps, DeFi, NFTs, etc. Removing support for its Ether (ETH) currency from Paxful seems a tad strange.
That said, Paxful CEO Ray Youssef claims they have “protected 11.6 million people” by doing so. He also hints at “integrity over revenue”. A commendable statement, although many will wonder whether Ethereum has an integrity problem. In the post, Youssef explains how Bitcoin is the go-to cryptocurrency for those who seek financial freedom. Although Ethereum may offer similar elements, it misses crucial aspects to achieve that goal.
Youssef further hints at the switch to proof-of-stake. He claims proof-of-work makes Bitcoin secure, whereas PoS makes “ETH a digital form of fiat”. An interesting sentiment, although staking Ether can be seen as collecting interest through a bank account. The switch to PoS doesn’t diminish its utility in payments, but only some consider proof-of-stake as secure as proof-of-work.
In addition, Youssef is concerned about Ethereum’s centralized nature. A small group of people controls it – in his words – and he expects the network to become permissioned, rather than permissionless. Such a development seems rather unlikely, although the concerns aren’t invalid either. Stake-based models often favor centralization, regardless of how many network nodes or validators may exist. Finally, Youssef points at the “large number of scam tokens issued on Ethereum” as another reason for delisting ETH.
What Comes Next For Users?
The purpose of peer-to-peer marketplaces is to empower users and let them make their own decisions. When Paxful removes access to specific currencies, they engage in a form of centralization. No matter how valid the reasons may be, the end user should be able to decide what they want to buy and bear the responsibility of their actions. Moreover, it seems as if the removal of Ethereum is only the first step. Other currencies may be removed from Paxful in the coming months.
Some will gladly point out Paxful’s CEO is a Bitcoin maximalist. He may very well be, although the facts remain unchanged. Bitcoin is the leading cryptocurrency with the most secure network. It also doesn’t require tokenization to gain momentum, and its proof-of-work consensus algorithm works well. Mining bitcoin is also becoming greener, negating any climate concerns. Moreover, BTC will provide financial freedom, whereas other currencies may never live up to that potential.
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