Telegram Plans Crypto Exchange And Digital Wallet

1 min read

Telegram is stepping in to offer trustworthy and decentralized alternatives as the collapse of the cryptocurrency exchange FTX undermines confidence in the industry's dominant participants.

The CEO and founder of the messaging app, Pavel Durov, said in his Telegram channel that the business will start developing "non-custodial wallets" and "decentralized exchanges" that would allow millions of users to securely trade their crypto assets..

The extreme centralization that disappointed hundreds of thousands of digital asset users may be corrected in this way, according to Durov.

According to the CEO, the project should be more than accomplishable because it only "took 5 weeks and 5 people, including myself" to construct Telegram's decentralized auction platform, Fragment.

Selling tokenized usernames on the blockchain has already brought in $50 million in Toncoin since the marketplace's inception over a month ago It runs on The Open Network (TON), which is the SEC-squelched spiritual successor to Telegram's earlier blockchain ambitions.

Durov rallied the developer community by urging the industry to return to decentralized applications and away from relying on outside parties. He claimed that reliance on central sources led to many people losing their money as a result of FTX's bankruptcy at "the hands of a few who began to misuse their authority."

Recall that FTX has been accused of mismanaging customer assets by lending them to its sibling trading department Alameda Research. Other exchanges are currently rushing to put greater checks and balances in place within their companies, such as proof of reserves systems that try to confirm ownership of customer assets on-chain.

One of the biggest and most reputable cryptocurrency exchanges, along with its CEO and founder Sam Bankman-Fried, went up in flames in less than a week. Dan Roberts, Stacy Elliott, and Kate Irwin explain what occurred, what it means to you, their opinions on the most intriguing side stories, and what we can all take away from it.