- Durov is ready for decentralization: no problems with development and implementation
- Crypto winter is getting tougher
Since the collapse of the FTX crypto exchange has undermined faith in centralized industry players, Telegram is intervening in the creation of reliable and decentralized alternatives. Pavel Durov said this in his Telegram channel on Wednesday: cryptocurrencies should become decentralized. The founder and CEO of the messaging platform announced that the company will start creating “non-custodial wallets” and “decentralized exchanges” that will allow millions of users to safely trade their cryptocurrency.
“This way we can fix the wrongs caused by the excessive centralization, which let down hundreds of thousands of cryptocurrency users,” Pavel Durov said.
Durov is ready for decentralization: no problems with development and implementation
The executive director argued that the project must be quite feasible: according to Durov, the development of Fragment, Telegram’s decentralized auction platform, “took only 5 weeks and 5 people including myself.”
The trading platform launched last month, has already earned $ 50 million on the Toncoin cryptocurrency by selling tokenized usernames on the blockchain.
It operates through the open network (TON), the spiritual successor to Telegram’s former blockchain ambitions, which were suppressed by the SEC a few years ago.
In the developer community, which was united by the founder of Telegram, everyone agrees with the idea put forward by Pavel Durov: cryptocurrencies should return to decentralized applications, then users will be able to abandon the need to trust third parties. According to him, dependence on centralized organizations led to the fact that many lost their money as a result of the FTX bankruptcy ” in the hands of a few who began to abuse their power.”
Crypto winter is getting tougher
FTX was accused of mismanaging customer funds by leasing them to its subsidiary Alameda Research trading department— a ban for firms engaged in the exchange business. Other exchanges are now trying to implement more effective checks and balances in their firms, including reserve confirmation systems that try to verify the ownership of customer funds on the network.
Cardano founder Charles Hoskinson repeated Durov’s same argument regarding FTX at the Financial Times Crypto and Digital Assets summit on Wednesday.
“The failures we’re having aren’t failures of protocols, aren’t failures of DeFi,” Hoskinson said. “They’re failures of trust, they’re failures of regulation, they’re failures of people.”
Cryptocurrency users seem to feel the same way. JP Morgan analysts have observed serious liquidity problems with other centralized exchanges: Gemini, OKX and Crypto.com .
The collapse of FTX literally caused a crypto infection affecting numerous centralized crypto lending firms.
- Cryptocurrency lender BlockFi filed for bankruptcy under Article 11 on November 28.
- Genesis frozen withdrawals due to the fact that 175 million dollars were blocked on FTX accounts.
- Atom Asset Exchange (AAX) has left social networks and suspended services. AAX added that the resumption of withdrawal of funds will put the exchange at risk of a capital shortage. On November 30, it was announced that AAX would most likely cease operations.
