The shocking and unprecedented change in fortunes for the famous crypto exchange, FTX, continues to affect stablecoin companies in Africa with Nigeria’s NestCoin caught up in the exchange’s financial conundrum.
Famous crypto exchange, FTX, succumbed to a shocking and rapid bankruptcy leaving most of its investors in the dark. The crypto exchange platform filed for Chapter II bankruptcy on 11th November 2022.
The bankruptcy of FTX affected different organizations in Africa including NestCoin. The Nigerian stablecoin claimed that it invested several assets in FTX.
NestCoin involvement in FTX’s demise
The fate of FTX rocked a number of financial technology and stablecoin companies in Africa. After the shocking move by FTX, most of these organizations started rolling out contingency plans.
The affected companies aim to save their businesses from sinking even further.
Last year, NestCoin managed to raise funding from several investors including Alameda Research. The firm used FTX as a custodian to store a significant loss due to liquidity issues at FTX. The challenges mainly affected the ability of the company to manage operational expenses.
NestCoin laid off some of its staff to reduce its operational costs as it struggles to deal with the crisis. Uncertainties still remain concerning the outcome of the assets held at FTX.
Apparently, FTX CEO, Sam Bankman pledged to remain at FTX to solve the exchange’s bankruptcy issues.
NestCoin CEO, Yele Bademosi claimed that he strengthened his resolve and remains committed to working in the crypto space. He called upon other parties in the industry to focus on a more decentralized crypto future.
He insisted that NestCoin remains relentless, resourceful and flexible in these hard times.
Also read; Nestcoin Aims to Unlock Wealth in Africa Through Crypto
