Phemex CEO says AI has had a negative impact on crypto

Phemex CEO Federico Variola said artificial intelligence has hurt the crypto industry overall by shifting capital away from it and making it easier for attackers to exploit weaknesses. In comments on Cointelegraph’s Chain Reaction, Variola argued that AI is increasing cybersecurity costs for smaller projects and could push parts of the industry toward more centralized structures. He said the growing threat from AIassisted attacks makes it harder for crypto teams to operate without larger security budgets. Variola pointed to recent incidents tied to AIrelated exploitation and said the risks could make selfcustody and decentralized finance less attractive for retail users. He added that AI agents may still help people build portfolios or make trading decisions, but he does not expect them to replace human judgment.