Telegram is set to build a crypto exchange in response to the collapse of FTX

finbold.com

Telegram founder Pavel Durov has announced plans to introduce decentralized crypto products to the messaging platform, including  crypto exchanges and  wallets. 

 According to Durov, the new company aims to improve the current centralization of cryptocurrencies, which he says has failed millions of users due to the collapse of the FTX exchange, the CEO said on his official Telegram channel on November 30. 

 "Telegram's next step is to create a set of decentralized tools for millions of people, including non-custodial wallets and decentralized exchanges, to securely trade and hold cryptocurrencies. This way we can fix the mistakes of over-centralization that are failing hundreds of thousands of cryptocurrency users," he said. 

Also Read : The Next 1000x Crypto

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

 Giving power to the people  

 The founder of Telegram  noted  the concentration of power in a few hands; it is no surprise that the FTX incident happened. 

 "The solution is clear: Blockchain-based projects should return to their roots - decentralization. Cryptocurrency users must move to reliable transactions and self-hosted wallets that do not depend on any  third party. In particular, he called  Ethereum (ETH ), suggesting that the platform “will remain outdated and expensive even after  recent improvements.” 

 Indeed, Ethereum has seen an increase in network development since the Merge update switched the platform to an energy-efficient proof of stake (PoS) network. 

 Telegram Cryptoguard 

 It is worth noting that Telegram has recently entered the crypto space with several products. For example, users of the messaging platform can buy and sell cryptocurrencies without leaving the app through The Open Network (TON). 

 Meanwhile, the collapse of FTX and the subsequent loss of customer funds raised questions about the governance of the centralized exchange. 

 As the investigation into the crash continues, the exchange's founder, Sam Bankman-Fried, has denied allegations of wrongdoing. According to Finbold's report, Bankman-Fried argued that the crash was caused by a "massive correlation of problems during  free market movements."

🌐  source