Telegram Is Set To Debut Decentralized Crypto Exchange
- Pavel Durov, the CEO of Telegram, announced that his firm will debut a decentralized exchange and other tools in the near future.
- The executive added that the collapse of FTX was a result of the crypto industry moving away from the concept of decentralization.
- Durov confirmed that Telegram’s blockchain platform, Fragment, sold usernames worth over $50 million in the last 30 days.
- The messaging application will also debut a non-custodial wallet in the near future.
Telegram, one of the world’s most-used messaging and social network applications, has decided to create a new decentralized crypto exchange, which will give a new drive to the bearish crypto industry. According to the CEO of the firm, which is registered as a company in the British Virgin Islands and as an LLC in Dubai in the United Arab Emirates, Pavel Durov, the new exchange will right all the wrong moves made by the now-disgraced crypto exchange FTX.
In his official Telegram channel, Durov noted that the collapse of crypto exchange FTX under the leadership of Sam Bankman-Fried, also known as SBF in the crypto space, is a prime example of the industry moving away from the concept of decentralization and towards a more centralized infrastructure. This has led to people easily manipulating the foundation that the once-multi-trillion dollar industry was built upon.
“The blockchain industry was built on the promise of decentralization, but ended up being concentrated in the hands of a few who began to abuse their power. As a result, a lot of people lost their money when FTX, one of the largest exchanges, went bankrupt,” said Durov.
Durov pointed out that the main reason behind the collapse of FTX and their bankruptcy was that certain individuals gained too much control of too much money that did not belong to them. Russian-born entrepreneur believes that decentralized products could solve the issues faced by crypto investors and prevent them from losing substancial money on exchanges.
The Telegram executive further stated that the only solution is for “blockchain-based projects should go back to their roots – decentralization.” This will save the industry as well as investors’ money. It is crucial to note here that crypto investors have lost billions in the last few months due to the collapse of Terra (LUNA) project, followed by crypto lenders Celsius Network, Voyager Digital, BlockFi, and others.
Durov believes that if cryptocurrency users would’ve switched to trustless transactions and self-hosted wallets and didn’t rely on any single third party, their money would’ve been safe with them. Therefore, he urged developers to create “fast and easy-to-use decentralized applications for the masses.”
The CEO of Telegram added that it took only five weeks for his developers to create Fragment, fully decentralized blockchain platform based on The Open Network (TON). In the last 30 days, the blockchain platform has sold over $50,000,000 worth of usernames, Durov revealed.
“Telegram’s next step is to build a set of decentralized tools, including non-custodial wallets and decentralized exchanges for millions of people to securely trade and store cryptocurrencies. This way we can fix the wrongs caused by the excessive centralization, which let down hundreds of thousands of cryptocurrency users,” Durov added.