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Bruce B. Dec 3, 2022
Financial Services News
Last active over 7 days
Last active over 7 days
As the cryptocurrency industry reels from the collapses of some of its former leading companies, Telegram instant-messaging platform is devising plans to capitalize on the growing distrust in centralized intermediaries.

Founder and CEO, Pavel Durov announced that Telegram will build a set of decentralized tools, including a decentralized cryptocurrency exchange and non-custodial wallets. Owners of such wallets have full control of their private keys and hence their crypto assets.

“The blockchain industry was built on the promise of decentralization but ended up being concentrated in the hands of a few who began to abuse their power,” Durov wrote in a Telegram post. “This way we can fix the wrongs caused by the excessive centralization, which let down hundreds of thousands of cryptocurrency users.”

The CEO pointed to the success of Fragment, a decentralized auction platform he helped build, and The Open Network (TON), its underlying blockchain. Fragment sold $50 million worth of Telegram usernames in less than a month, and will expand beyond usernames in the coming days.

Telegram’s CEO has not specified whether the company plans to develop the wallet and the exchange on The Open Network, otherwise known as TON.

The TON foundation announced a $126 million rescue fund to support crypto projects weathering the fallout of the FTX collapse. Telegram claimed to have 700 million active users in June.

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