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Telegram Is Building a Crypto Exchange

Facing increasing centralization in the crypto space, Telegram aims to build its own decentralized crypto trading platform and set the course for the future.

By Mike Hesp
• 3 min read
Telegram Is Building a Crypto Exchange

Facing increasing centralization in the crypto space, Telegram is looking to develop its own decentralized crypto trading platform and set the course for the future.

Worldwide, 700 million people use Telegram. The WhatsApp alternative has seen explosive user growth of about 1,400 percent in six years. This surge is, at least partly, due to the explosive spread of cryptocurrencies in recent years. Meanwhile, more crypto enthusiasts are enjoying the decentralized structure of this instant messaging service. Telegram is tapping into this momentum: while its internal blockchain marketplace has already launched, the company is working on a decentralized swap and wallet solution.

Decentralized swap and wallet product

Pavel Durov, Telegram's CEO, is furious with FTX: "The blockchain marketplace was built on the promise of decentralization, but it ended up in the hands of a few who started abusing their power." The CEO is prompting his developers to research "fast and user-friendly decentralized applications for the masses".

The next step for Telegram is to develop decentralized tools. A first proposal is so-called "non-custodial wallets." This approach aims to fix the issues of "overcentralization," according to the report. Durov has not yet presented a concrete concept.

Telegram: a crypto platform?

An internal cryptocurrency, a thriving crypto marketplace, and the ability to trade Bitcoin and other assets directly within the messenger app. In short, the Telegram ecosystem is a paradise for many crypto investors.

So far, this concept seems to be working: according to Durov, $50 million worth of Telegram usernames were sold on the marketplace within a month. @Doge, for example, was traded for $500,000. It remains to be seen how far the messaging app and founder Durov will venture into the crypto space. It seems inevitable that Telegram can expect even more users in the future.

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