Is Ethereum a Scam Enabler? This CEO Thinks So

Ethereum price continued to consolidate after the network was accused of diverging from its original goal. ETH coin was recoiling at the $1,200 level where it has been in the past few days. This price is substantially lower than its all-time high of almost $5,000.

Is Ethereum a scam? 

A major crypto news of this week was the decision by Paxful to discontinue offering Ethereum on its platform. This was a notable development since Paxful is one of the biggest peer-to-peer crypto exchange in the world.

Unlike other exchanges, Paxful matches crypto buyers and sellers in a safe environment. The exchange does not deal with customer’s fiat currencies. Instead, it holds cryptocurrencies on behalf of customers. It also provides escrow services during a transaction. Paxful has millions of customers around the world.

Therefore, it made headlines when the company’s CEO announced that he will be delisting Ethereum in its platform. In his explanation, he noted that Ethereum had deviated from its original goal following the recent merge event. 

The merge transitioned Ethereum from a proof-of-work into a proof-of-stake network. By so-doing, Ethereum introduced staking and validator features. As a result, some analysts believe that it has become a financial security. 

In his statement, he argued that Ethereum had moved from a decentralised platform into a centralised one that is controlled by a group of powerful validators. He also argued that the creation of tokens in Ethereum meant that many people were exposed to its scams. 

So, is Ethereum a scam? In my view, I believe that Ethereum’s transition into a proof-of-stake network brought about centralisation. It also placed the network into significant risks. However, the transition also set the stage for future network upgrades, which are needed. As such, it is not right to describe Ethereum as a scam.

Ethereum price forecast

The 4H chart shows that ETH price has been in a tight range recently. In this period, it has continued to consolidate at the 25-day and 50-day moving averages while the Relative Strength Index (RSI) continued moving below the neutral point. It has also formed a descending triangle pattern shown in green.

Therefore, Ethereum price will likely continue falling as sellers target the next key support level at $1,000. A move above the resistance point at $1,300 will invalidate the bearish view.