Phemex CEO Calls AI a 'Net Negative' for Crypto Industry
Phemex CEO Federico Variola has expressed skepticism about AI's impact on the crypto industry, calling it a 'net negative'. Speaking to Cointelegraph's Chain Reaction, he stated that AI has diverted capital away from crypto and empowered bad actors who exploit protocols. He also warned that the increased use of AI could lead to greater centralization in the industry.
Variola pointed out that recent high-profile hacks, such as the $116 million Bitcoin theft from Coldcard hardware wallets in July, were likely facilitated by AI. He added that smaller teams working on protocols will now require massive cybersecurity budgets due to the increased threat from AI-assisted attacks.
Despite his concerns, Variola believes that AI agents can be useful for investors, helping them build portfolios and make better trading decisions. However, he emphasized that human traders will still need to make the final decision, as AI agents are not a replacement for human judgment.