Papertrade faces criticism over PAPER token transfer restrictions amid security concerns

Papertrade, a synthetic perpetuals protocol, has raised concerns over the potential risks associated with making its PAPER token available for exchange. Delphi Digital’s Jason Pagoulatos concurs with the assessment, highlighting that the ability to quickly generate a perpetual market could make the token vulnerable to manipulation. The protocol’s decision to maintain transfer restrictions after accruing approximately $140 million in deposits has drawn criticism, with Pagoulatos labeling the alteration as a “bad look.” This development has sparked a debate within the crypto community regarding the balance between security and market accessibility.