Paxful Co-founder Plans to Reopen P2P Crypto Trading

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Last Updated on May 7, 2023 by Bitfinsider

Ray Youssef, co-founder of Paxful, has ambitious intentions to relaunch peer-to-peer trading after his company went bankrupt earlier this year. And it will not be available in the United States.

Civ Kit, his new venture, is a “blueprint for developers and entrepreneurs to build their own censorship-resistant and permissionless global marketplace.”

It’s what Youssef refers to as a “unstoppable marketplace” that will allow anybody, everywhere to trade utilizing the Lightning Network and Nostr, a technology that allows for decentralized social media.

“We want everyone to trade with everyone else.” “We want someone from Venezuela to trade with someone from Russia,” Youssef stated on a recent podcast with The Block’s Frank Chaparro. “There are no barriers, and no permission is required.”

The venture follows the demise of Paxful, which he co-founded in 2015 with Artur Shaback, who is now suing Youssef. In the face of legal uncertainties in the United States — but nothing imminent — Paxful chose to dissolve the corporation in November — a “nice, tidy dissolving,” Youssef said.

“We spent all of the money on compliance to ensure that any frozen funds were returned to the users, and there would be no creditors,” Youssef explained. Shaback, on the other hand, “decided to sue me because he wouldn’t get his nine-figure payday if the company went bankrupt.” So it was entirely motivated by greed.”

Instead of “know-your-customer,” Civ Kit will employ “know-your-peer (KYP) oracles.”

“KYC is horrible,” Youssef declared. “People want to know who they’re trading with, especially when it comes to large transactions.” And this is where Swipe Your Peer replaces KYC… We can begin tagging accounts with reputation based on the nature of people’s trading activities.”

While other such marketplaces are in the works, Youssef claims that “the difference is that Civ Kit is built by someone, designed by someone that’s already done it out in the real world and seen every possible problem in a case.”

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