Pavel Durov, the founder of the messaging app Telegram, Pavel Durov, the founder of the messaging app Telegram, has announced plans for the company to introduce decentralized cryptocurrency products, such as a crypto exchange and non-custodial wallets.
The new initiative, according to Durov, seeks to address the current centralization of cryptocurrency entities, a problem he claimed has let down millions of users in light of the collapse of the FTX exchange, the CEO said on November 30 in his official Telegram channel. According to him:
“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 also emphasized how the blockchain ecosystem today has strayed from its original goal of promoting decentralization.
Giving Individuals Power
The founder of Telegram noted that the FTX incident wasn't unexpected given the concentration of power in a small number of people.
“The solution is clear: blockchain-based projects should go back to their roots – decentralization. Cryptocurrency users should switch to trustless transactions and self-hosted wallets that don’t rely on any single third party.”
Durov also urged blockchain developers to create products that are simple for the general public to use. The Ethereum (ETH) platform was specifically mentioned, and he claimed that it "remains outdated and expensive even after its recent tweaks."
Indeed, since the Merge upgrade switched Ethereum to the power-efficient proof-of-stake (PoS) network, the network has experienced increased development.
Telegram's Forays Into Crypto
It is important to note that Telegram has recently entered the cryptocurrency space with a number of products. For instance, users of the messaging platform can use The Open Network (TON) to buy and sell cryptocurrencies without ever leaving the application.
In addition, concerns about the administration of centralized exchanges have been raised in light of FTX's demise and the subsequent loss of customer funds.
Sam Bankman-Fried, the exchange's founder, has refuted accusations of wrongdoing as the investigation into the collapse continues. Bankman-Fried allegedly asserted in a Finbold report that the collapse occurred as a result of a "massive correlation of things during a free market moves."
