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Telegram set to build crypto exchange in response to FTX collapse

Telegram set to build crypto exchange in response to FTX collapse

Telegram founder Pavel Durov has announced the messaging platform’s plans to launch decentralized cryptocurrency products, including a cryptocurrency exchange and non-custodial wallets. According to Durov, the new company seeks to rectify the existing centralization of cryptocurrency units, which he noted has disappointed millions of users about the collapse of the FTX exchange, the CEO said on his official Nov. 30 Telegram channel.

“The next step for Telegram is to create decentralized tools for millions of users to safely trade and store cryptocurrencies, including non-custodial wallets and decentralized exchanges. This way, we can correct the errors caused by excessive centralization that hundreds of thousands of cryptocurrency users have,” he said.

The Telegram founder noted the concentration of power in a few hands; It is no surprise that the FTX incident happened. The answer is simple: blockchain-based initiatives must go back to their roots: decentralization. Cryptocurrency users should switch to trusted transactions and self-hosted wallets that do not rely on third parties. He added.

Moreover, Durov urged blockchain developers to create easy products for the masses. He evoked Ethereum (ETH) and suggested that the platform remains outdated and expensive even after its recent tweaks and stakes (PoS) for energy efficiency.

Telegram’s crypto inroads 

It is worth noting that Telegram recently entered the crypto space with several products. For example, The Open Network (TON) allows users of the messaging platform to buy and sell cryptocurrencies without leaving the app. At the same time, the collapse of FTX and the consequent loss of customer funds has raised questions about the management of centralized exchanges. As the investigation into the crash continues, exchange founder Sam Bankman-Fried has denied allegations of wrongdoing. According to a Finbold report, Bankman-Fried claimed that the crash was due to “a massive correlation of things during free market movements.”

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