Telegram’s instant-messaging platform devises plans to capitalize upon the growing distrust of central intermediaries as the cryptocurrency industry struggles after the collapse of some of its leading companies.
Pavel Durov, founder and CEO of Telegram, is a cryptophile. He announced Wednesday that Telegram would create a number of decentralized tools, such as a cryptocurrency exchange and non-custodial wallets. The owners of these wallets are in complete control of their private keys as well as their crypto assets.
“The promise of decentralization in blockchain was not realized. Instead, it became concentrated in the hands of a few people who started abusing their power,” the executive said in a Telegram. The Telegram mentioned FTX’s collapse and subsequent bankruptcy. “This will allow us to correct the harm caused by excessive centralization, which resulted in the demonetization of hundreds of thousands of crypto users.
Durov cited Fragment’s success as a decentralized marketplace platform and The Open Network (TON), its underlying cryptocurrency, for his praise. Durov said that Fragment was able to sell $50 million worth of Telegram usernames in a matter of a month. He expects the company to expand beyond usernames soon.
Telegram developed the TON Blockchain initially, but the company ceased operations in May 2020 due to a lawsuit brought by the U.S Securities and Exchange Commission. The company made a $1.7 billion token sale after that. The U.S. Securities and Exchange Commission deemed it an unregistered offering. Durov announced support for those who took up the project in late-2021.
Telegram’s CEO, John Telegram, has not stated whether Telegram intends to develop the wallet on TON or the exchange. A representative from the TON Foundation, the organization that oversees the development of the blockchain, has not yet responded to a request.
Telegram announced on Wednesday that it had created a $126 million rescue fund for crypto projects to weather the fallout from the FTX collapse. Telegram claimed that there were 700,000,000 active users at the end of June. It is also popular in former Soviet Union countries.
