AI has been a ‘net negative’ for crypto: Phemex CEO

Federico Variola says AI has diverted capital from crypto and is empowering attackers, while rising cybersecurity costs could push the industry toward greater centralization.

Phemex CEO Federico Variola says AI has been a ‘net negative’ for crypto, despite the crypto exchange announcing an AI-focused transformation earlier this year. 

Speaking on Cointelegraph’s Chain Reaction, Variola said AI has diverted capital away from the industry, while empowering attackers and driving up cybersecurity costs for smaller teams — pressures that risk pushing crypto toward greater centralization. 

“It’s difficult to be bullish about AI in crypto,” he said. “Liquidity have been significantly diverted to to that industry on one side. On the other hand, AI has empowered a lot of bad actors that have been exploiting protocols.”

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