Paxful, a peer-to-peer services exchange based in New York, has announced that it will delist Ethereum from its platform and the announcement was made via email and then using the social media network by its CEO Ray Youssef. Noting that the recent changes to the token have turned it into a digital form of fiat.
Youssef explains that one of the reasons behind this move is to replace the proof-of-reserve consensus mechanism with the pivot demonstrated by Ethereum as well as the rules that apply to bitcoin for a tiered mechanism and of course Proof of Work is a proven system that makes bitcoin the only honest money maker. One of the first reasons behind this action has to do with the pivot executed by Ethereum, a proof-of-work allowing money to be made.
Another reason behind this decision of course has to do with Ethereum becoming increasingly centralised after the consensus change and is currently managed by a small group of people. Yusuf also talks about tokenization and how big actors took advantage of scams using Ethereum and did a variety of unauthorised activities.
He said that all the tokens displayed by Ethereum appear to be scams that have looted billions of rupees from people. Apart from this, they say that Paxful will always work properly no matter how much money the company has to spend for it and how much it has to spend in its development.
From the statements made by Yusuf, we can understand that there were different reactions on social media with some users criticising the reasoning behind this decision. When asked if the exchange would remain bitcoin-only, he replied that USDC and USDT were definitely the real uses of Ethereum’s largest issued stablecoins and that he would not completely eliminate Ethereum from the platform. Because users are required to pay a fee to transact, 94 percent of Paxful’s trades involve only bitcoin. Certainly bitcoin is a multiple and international cryptocurrency which has always been a leader in payment service.
Paxful was one of those exchangers that suspended its services for Venezuelan users in September 2020 due to sanctions implemented by the US government and provided a reported trading volume of $1.1 billion during the first half of 2020 . Surely the prevalence of different types of cryptocurrencies is highlighted through the means that people got the opportunity to stick with it and enjoy its economical and beneficial plans always.
