According to Durov, the new venture seeks to rectify the existing centralization of cryptocurrency entities, a factor he noted has let down millions of users with reference to the FTX exchange collapse, the CEO said in his official Telegram channel on November 30.
“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,” he said.
Durov further pointed out that the current blockchain ecosystem has deviated from its founding principle of promoting decentralization.
Giving people the power
The Telegram founder noted due to the concentration of power in a few hands; it’s no surprise that the FTX incident occurred.
“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,” he added.
Furthermore, Durov called on blockchain developers to build products that are easy to use for the masses. Notably, he called out the Ethereum (ETH), suggesting that the platform “remains outdated and expensive even after its recent tweaks.”
Telegram’s crypto inroads
It is worth noting that Telegram has recently made inroads into the crypto space with several products. For instance, users of the messaging platform can purchase and sell cryptocurrencies without leaving the application using The Open Network (TON).
At the same time, the collapse of FTX and the subsequent loss of customer funds has resulted in questions regarding the management of centralized exchanges.
As the probe into the collapse continues, the exchange founder Sam Bankman-Fried has denied allegations of wrongdoing. According to a Finbold report, Bankman-Fried claimed that the collapse emerged due to a ‘massive correlation of things during a free market moves.’