I agree, it looks like a paph, not a phrag. Unlike phrags, paphs don't need as much water. Paphs grow in leaf litters or stone cliffs, I am not sure how well it will respond to water culture. The roots are very healthy though, so it likes the medium it was growing in before you make the change.
I really do think you have a higher chance of killing it in water culture than to leave it in its previous medium.
