The inventor of Telegram, Pavel Durov, has revealed the messaging platform’s intention to provide decentralized cryptocurrency solutions, such as a cryptocurrency exchange and non-custodial wallets.
According to Durov, the new business aims to address the present centralization of cryptocurrency companies, an issue he saw as having let down millions of customers in the wake of the FTX exchange’s demise, the CEO said on his official Telegram channel on November 30.
Durov said that the current blockchain ecosystem has strayed from its fundamental objective of fostering decentralization.
“The answer is obvious: blockchain-based enterprises must return to their origins, which is decentralization,” he said.
In addition, Durov urged blockchain developers to create user-friendly solutions for the public. Notably, he criticized Ethereum (ETH), claiming that the platform “remains inefficient and costly despite its latest modifications.”
In fact, Ethereum has seen accelerated growth in its network after transitioning to the more energy-efficient proof-of-stake (PoS) network through the Merge update.
It is worth mentioning that Telegram has lately introduced many crypto-related services. Using The Open Network, users of the messaging platform may buy and trade cryptocurrencies without leaving the service.
Simultaneously, the failure of FTX and the resulting loss of client assets have raised issues about the operation of centralized exchanges.
Sam Bankman-Fried, the exchange’s creator, has repeatedly denied any wrongdoing as investigators work to determine what caused the crash. Bankman-Fried, according to a Finbold investigation, said the crash happened because of a “huge correlation of objects during a free market swings.”