After the collapse of FTX, which was once the biggest crypto exchange in the world and now is nothing, the faith in other industry’s centralized players was shaken, due to which upcoming platforms and those in the industry are trying to become decentralized based. Today, on the 30th of November, the popular messaging platform Telegram announced its plans to build a trustless and decentralized cryptocurrency exchange platform.
In his Telegram channel, Pavel Durov, the founder & CEO of the messaging platform, said that his company would begin building non-custodial wallets and decentralized exchanges that would allow users to trade their crypto assets safely. Regarding the benefits of decentralization, Pavel said that this way, we can fix the wrongs caused by excessive centralization, which let down hundreds of thousands of cryptocurrency users.
Pavel argued that the project of building a decentralized based platform and wallets should be more than feasible. According to the CEO, the development of Telegram’s decentralized auction platform, Fragment, took only 5 weeks and 5 people, in which Pavel was also included. Launched last month, Fragment has already got in $50 million worth of Toncoin by selling tokenized usernames on the blockchain. This auction marketplace runs on The Open Network, which is a successor of Telegram’s former blockchain ambitions.
In the announcement, Pavel suggested developer community push the industry away from having to trust third parties and take it back towards decentralized applications. He said that reliance on centralized companies caused many to lose their money, such as in FTX’s bankruptcy. It’s not the first CEO, who is arguing and suggesting to move toward decentralization due to the collapse of FTX, as Cardano founder Charles Hoskinson has also the same views as Pavel.
On the 30th of November, at the Financial Times Crypto and Digital Assets Summit, Charles said that the failures we’re having aren’t failures of protocols or DeFi, as they’re failures of trust, regulation, and people.
