Nigerian Web3 Startup Says Funds Are Stuck With FTX, Lays Off Employees

Nestcoin, a Nigerian Web3 startup which got an investment from Alameda Research in 2021, revealed on Nov. 14 that it had “a significant proportion of stablecoin investment” stuck at FTX. According to the startup’s CEO, laying off some employees allows the company to focus on building a more decentralized crypto future.

Using FTX as Custodian of Nestcoin’s Stablecoins

The Nigerian Web3 startup Nestcoin informed its investors on Nov. 14 that funds earmarked for the entity’s day-to-day activities are stuck with the collapsed crypto exchange FTX. The Web3 startup said after it reevaluated its business position, a decision to let go of some of the employees was made.

According to a statement signed and shared by the startup’s CEO Yele Bademosi, the Web3 company was not trading crypto assets on the now-defunct crypto exchange. Instead, Nestcoin — a recipient of an investment from Alameda Research — primarily used FTX as a custodian of its fiat money and stablecoins.

“We used the closely associated exchange, FTX, as a custodian to store a significant proportion of stablecoin investment we raised [for] our day-to-day operational budget,” Bademosi explained.

‘A Decentralized Crypto Future’

Concerning the startup’s decision to lay off its employees, Bademosi insisted that this was justified because it allows Nestcoin “to focus on building a more decentralized crypto future where no one organization or person can amass enough power to influence a nascent industry that has the power to do good.”

Meanwhile, in a tweet that followed the announcement, the Nestcoin CEO claimed that his desire now is to help departing workers secure employment elsewhere.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts concerning this story? Let us know what you think in the comments section below.

Related Posts

Digital identity platform integrates with zkSync for on-chain KYC

RNS.ID’s on-chain KYC solution is designed on a “privacy engine” to encrypt users’ data., a digital Web3 identity platform developed to support the application and issuance…

European Central Bank blasts Bitcoin —community responds

After the European Central Bank released a blog post on the shortcomings of Bitcoin, the crypto community on Twitter took to the comments to defend the cryptocurrency….

Ukraine to launch CBDC to fight crisis – Will it be based on Stellar Lumens?

Ukraine plans to make its Stellar-based CBDC to support retail cryptocurrency payments.  Stellar has also been partnering with other countries to develop their CBDCs. The National Bank…

Should you start your crypto trading journey?

Interest in digital currencies has increased considerably during the last couple of years, so the vast world of cryptocurrencies lures more and more individuals. Though, there are…

Cardano partners with 2 industry leaders in Web3 – Will it drive ADA price to $2?

Cardano’s commercial arm EMURGO announced investments in OAK Network and SubQuery protocol to expand its footprint in the Web3. The total number of smart contracts built atop…

Bitcoin, Ethereum Technical Analysis: BTC Moves Above $17,000 on Wednesday

Bitcoin moved to $17,000 on Wednesday, as markets continued to digest the U.S. consumer confidence report. Confidence amongst consumers fell to its lowest level since July, despite…

Generated by Feedzy