Critics Doubt PayPal’s Decision to Launch Stablecoin on Ethereum Mainnet
Critics have raised doubts about PayPal’s decision to launch a stablecoin on the mainnet of Ethereum due to potentially high expenses. David Phelps, an advocate for web3 technologies, expressed skepticism and suggested that PayPal’s choice could be a strategic move to make their own fees seem less significant compared to Ethereum’s gas costs. Phelps pointed out that PayPal could have opted for more cost-effective solutions like various rollups that cost only two cents each.
Key Points:
- PayPal’s decision to launch stablecoin on Ethereum mainnet questioned by critics.
- David Phelps suggests PayPal’s move could be a tactic to downplay their own fees.
- Phelps highlights the cost-effectiveness of alternative solutions like rollups.
- PayPal acknowledges potential for higher fees outside of their platform.
Hot Take:
PayPal’s decision to launch a stablecoin on Ethereum’s mainnet instead of using more cost-effective alternatives may be a calculated move to make their own fees appear insignificant. While critics raise concerns about the potential expenses, PayPal seems aware of the challenges posed by Ethereum’s transaction costs. It remains to be seen how this decision will impact both PayPal and the crypto community.
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