Paxful CEO Advises Users To Keep Funds Away From Exchanges

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Ray Youssef, the founder and CEO of Paxful, a Bitcoin-based financial app, issued an email a few days ago advising their users to keep their funds away from exchanges, including Paxful.

His decision was based on the recent happenings in the crypto space for quite some time now, where various exchanges bit the dust and went to the grave with their users’ liquidity. 

Ray noted that he has the onus of serving his users, and one of the things he must ensure is that “they must not be at the mercy of the custodians or their morals.” As a result, the best custodians, according to him, are not exchanges, but individuals. 

His decision was based on the recent happenings in the crypto space for quite some time now, where various exchanges bit the dust and went to the grave with their users’ liquidity. 

First among these was the FTX saga. FTX was a multibillion-dollar crypto exchange that held up to $1.6 billion and had a valuation of around $40 billion.

Unfortunately, the exchange went south due to alleged foul-play by the CEO and other top executives.

As a FTX went six-feet into the ground, the hard-earned funds of its users also went along; thereby turning some millionaires into paupers overnight. 

Second, AAX was another fast-rising crypto exchange that experienced around $57 billion in daily trading volume several times this year. Not long ago, AAX suspended withdrawals, and the ship of the exchange eventually sank. 

Having said that, some other crypto exchanges, including Crypto.com, are displaying the same symptoms as they have paused withdrawals on some token pairs.

The current happenings in crypto will lead to the downfall of more exchanges with weak leadership and reserves. Thus, it is not pessimistic to expect more closedowns of exchanges. 

With all these dots coming together, Ray of Paxful opined that it is high time traders and investors took absolute charge of their funds by taking them out of exchanges since nobody knows tomorrow. 

Some have commended the openness of the Paxful CEO, and noted that such honesty is needed for the ecosystem to thrive in the long-term. 

But at the same time, some are of the view that the announcement appears to be a case of reverse psychology; as he tells the users to withdraw funds, they will trust him more and leave their funds on Paxful. 

Whatever the case might be, it is noteworthy that the crypto industry is in a phenomenal season, and all industry players must have the requisite intelligence to manage their funds and keep them safe from unfortunate incidents and bad actors. 

As a result, it is critical to have a cold wallet, such as a Trezor or Ledger, or to create wallets on decentralized exchanges.These self-custody acts lubricate the ethos of crypto, “not your keys, not your crypto.”

Despite these developments, Ray reminds all users to continue leveraging Bitcoin’s open and level playing field in order to achieve more inclusive and accessible financial independence. 

John Fawole
WRITTEN BY

John Fawole

John Fawole is a blockchain technical writer and solidity developer. At Decentrapress he covers the latest stories around the blockchain industry.

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