Phemex CEO stated that AI has a net negative impact on the cryptocurrency industry

Phemex CEO Federico Variola stated in Cointelegraph's Chain Reaction program that AI has a "net negative impact" on the cryptocurrency industry. He believes that AI diverts funds from the crypto sector on one hand, while on the other hand, it empowers attackers to exploit protocols through means such as social engineering or vulnerability exploitation, increasing cybersecurity costs for small teams. This pressure may push the crypto industry towards greater centralization.

Variola expressed that it is difficult to maintain an optimistic view of AI in the crypto space, as many so-called fixes actually encourage more rather than less centralization. He also warned that as AI becomes more widespread, threats such as device breaches or social engineering will increase, reducing the appeal of DeFi to ordinary retail users. However, he acknowledged that AI agents have practical value in helping investors build portfolios or make better trading decisions, but he expects that AI agents will not completely replace human trading decisions.

The context of this statement is that Phemex announced an AI transformation in February this year, planning to integrate AI into product development and internal operations. Additionally, in July this year, attackers exploited a vulnerability in the Coldcard hardware wallet to steal approximately $116 million in Bitcoin, a vulnerability widely believed to have been discovered through malicious use of AI; Coinkite CEO Rodolfo Novak warned at the time that the speed at which AI-assisted code reviews find vulnerabilities has surpassed that of the industry's most experienced experts. CertiK senior blockchain investigator Natalie Newson pointed out that AI can also become one of the greatest defensive forces.