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Instant messaging service Telegram announced that it will launch a crypto exchange and wallet to fix excessive centralization.
Telegram plans to establish a digital currency exchange and a non-custodial crypto wallet. According to the company’s co-founder and CEO Pavel Durov, Telegram is pushing ahead with its projected suite of decentralized crypto products amid the crypto winter. Durov stated that the messaging app would embark on its crypto and blockchain plans despite the recent FTX-induced industry turmoil.
Durov made the announcement via his official Telegram channel, suggesting that his exchange and crypto wallet will go against the norm. According to the Telegram CEO, the blockchain industry was built on the idea of decentralization. However, the concentration of blockchain power went to a few hands that subsequently abused that power. The Telegram CEO cited the ripple effects of the FTX crash as a typical example of excessive centralization of blockchain power. Emphasizing the need for conscious decentralization where crypto users switch to “trustless” products independent of third parties, Durov said:
“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.”
Fragment to Potentially Power Telegram Crypto Exchange & Wallet Plans
Durov also touched on the development of Fragment, a fully decentralized auction platform. According to the Telegram boss, it took a relatively short number of weeks and few people to put Fragment together. Built on the previously-abandoned Telegram Open Network (TON), Fragment represents Telegram’s second attempt at bootstrapping its own digital currency infrastructure. According to Durov:
“Fragment has been an amazing success, with 50 million USD worth of usernames sold there in less than a month. This week, Fragment will expand beyond usernames.”
To build on the momentum, Telegram now seeks to launch additional tools that can further steer the crypto ecosystem away from centralization. In addition, Durov also implored other blockchain developers to build user-friendly products for the masses. In the same breath, the entrepreneur criticized the Ethereum (ETH) platform as “outdated and expensive” even after recent tweaks.
Durov believes that the potential to develop “easy-to-use decentralized applications for the masses” is now feasible. He further stated that technologies like TON have the wherewithal to give power back to the people.
Telegram has directly integrated the TON blockchain with its messenger app. Earlier known as Newton and Toncoin, the TON system is one of two rival blockchain projects that grew out of Telegram’s initial TON concept. Although Telegram’s community of supporters developed Newton and Toncoin, only one ended up with the messaging app’s official recognition.
Backers of the TON network recently announced a “rescue fund” of $126 million to support crypto projects impacted by FTX’s implosion. Nan Wang, a TON Foundation investment associate, explained that the TON fund is not necessarily acquiring distressed assets but rather propping up projects experiencing liquidity issues.
The fund has the backing of DWF Labs, Darley Technologies, Hexa Capital, and TONcoin Fund Ecosystem Partners.
As of late yesterday, the TON token was changing hands approximately 4% higher.