Phemex CEO: AI's Crypto Role May Be a Centralizing Force

Phemex CEO Federico Variola is sounding the alarm on AI's growing presence in crypto. He argues that AI is currently a net negative for the sector, fueling attacks and increasing costs.

In an interview with Cointelegraph, Variola said that AI has diverted liquidity away from crypto and intensified security risks, particularly for smaller teams that cannot absorb rising defense costs. This shift, he believes, may push crypto further toward centralization rather than strengthening decentralization.

Variola pointed out that recent crypto incidents have been linked to AI-enabled tactics, raising the perceived baseline risk for both self-custody and decentralized finance (DeFi). He warned that as AI becomes more pervasive, attacks may increasingly take the form of device compromises or social engineering campaigns, making DeFi less appealing to retail users.

However, Variola also sees practical uses for AI agents in portfolio support and decision-making. He emphasized that these tools should be treated as decision support rather than autonomous replacements, with human oversight remaining essential for security and risk management.