The FTX crash sets one of the biggest failures of the crypto industry to this day. Every investor in FTX is regretting their decision to trust the exchange in the first. However, to gain the crypto enthusiasts’ trust back, Telegram is launching a new decentralized crypto Telegram exchange. Telegram plans to create decentralized and trustless solutions.
Quick Take:
- Telegram is building a trustless and decentralized crypto alternative solution, the Telegram exchange with a non-custodial wallet.
- The move comes after the huge failure of FTX, damaging the trust people have in crypto.
- With this, Pavel Durov wants people to stop trusting third-party service providers.
Telegram Exchange Will be a Welcome Move for the Crypto Industry
People are losing confidence and trust in the crypto industry because of the recent market downturn. Telegram CEO and founder Pavel Durov shares that their team is working on building a decentralized and trustless crypto Telegram exchange. With this, the Telegram founder wants to heal the wounds left by excessive centralization.
“The solution is clear: blockchain-based projects should go back to their roots – decentralization. Cryptocurrency users should switch to trustless transactions and self-hosted wallets that don’t rely on any single third party.”
Pavel Durov, founder and CEO of Telegram
Pavel Durov is asking the development community to revamp the decentralization character of the crypto industry. Furthermore, one of the biggest examples of trusting centralized exchanges and facing losses is the FTX crash. Crypto analysts and the community believes that the FTX crash is the result of blatant mismanagement.
To this, Pavel Durov says, “the crash caused many to lose their money in FTX’s bankruptcy at the hands of a few who began to abuse their power.”
Related Content: Is FTX Bankrupt? It Appears So.
The analysts are accusing FTX of taking funds from clients and redirecting them to its sister trading organization, Alameda. Plus, this type of transaction is not feasible in the exchange business. As a result, the other exchanges are now implementing better checks and balances. Moreover, the proof of reserves is one of the systems put in place for the verification of the client’s funds on the chain.
According to Durov, the next step for Telegram is to develop a collection of decentralized tools. These include non-custodial wallets and Telegram decentralized exchanges for the storage and trading of cryptocurrencies in a safe and secure manner. He also emphasized that with technologies such as TON, the blockchain industry will be able to restore people’s power.
Funds Draining and Bankruptcy Follow FTX Crash
Following the FTX crash and its filing for bankruptcy, the crypto community is extracting their funds back from other exchanges. Hence, crypto exchanges like Gemini, OKX, and Crypto.com are feeling the heat in the aftermath of the FTX crash. Moreover, the crash has a domino fall effect. Numerous other crypto exchanges have filed for bankruptcy. If not for this, exchanges like Genesis are working with frozen withdrawals.
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