Telegram to build a crypto exchange in response to the FTX crash

Telegram founder Pavel Durov announced that the messaging platform plans to unveil decentralized cryptocurrency products, including cryptocurrency exchanges and non-custodial wallets.

According to Durov, the new project seeks to rectify the current centralization of cryptocurrency units, a factor he notes has failed millions of users due to the collapse of the FTX exchange, the CEO said on his official Telegram channel on November 30.

The next step for Telegram is to build a suite of decentralized tools, including escrow wallets and decentralized exchanges for millions of people to safely trade and store cryptocurrencies. In this way, we can fix the errors caused by excessive centralization, which has failed hundreds of thousands of cryptocurrency users.”

Durov also noted that the current blockchain ecosystem has deviated from its core principle of promoting decentralization.

Giving power to people

Telegram’s founder was noted for concentrating power in a few hands; Not surprisingly, the FTX incident occurred.

“The solution is clear: blockchain-based projects must return to their roots – decentralization. Cryptocurrency users must switch to trustless transactions and private wallets that do not depend on any third party.

Additionally, Durov urged blockchain developers to build user-friendly products for the masses. Notably, he called out Ethereum (ETH), stating that the platform “is still outdated and expensive even after recent modifications.”

Ethereum has already recorded an increase in network development with the Merge upgrade that turns the platform into an energy-efficient proof-of-stake (PoS) network.

Telegram Encryption Hacks

It should be noted that Telegram has recently made progress in the field of encryption with several products. For example, users of the messaging platform can buy and sell cryptocurrency without leaving the app using the Open Network (TON).

Meanwhile, the collapse of FTX and the subsequent loss of client funds raised questions about the management of centralized exchanges.

As the investigation continues to unravel, exchange founder Sam Bankman-Fred has denied allegations of wrongdoing. As reported by Coinphony, Bankman-Fried argued that the crash occurred because of “the massive correlation of things during the free market movement.”

The Telegram post building a crypto exchange in response to the FTX Collapse appeared first on Coinphony.

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