The collapse of the FTX exchange has created an uncomfortable situation for many crypto businesses. If some like BlockFi and Genesis could disappear, others should be able to withstand the crisis. This is because they have less exposure to FTX. But for them, radical measures must be taken, such as budgetary restructuring or cuts in the workforce. It is in this logic that the Nigerian company Nestcoin fits. It is one of the few African players in the Web3 value chain.
A significant portion of Nestcoin funds were stored at FTX
On November 14, the Nigerian company Nestcoin announced to its investors that a significant part of its stablecoin investments was blocked on the FTX crypto exchange. This is mainly the working capital of the company, which is headquartered in Lagos. A situation that puts finances in a delicate position and that pushes those responsible to take drastic measures. In this sense, the company has announced that it will operate a reduction in the number of its employees.
“Laying off some employees will allow the company to focus on building a more decentralized crypto future. A future where no organization or person can have enough power to influence a fledgling industry, which has the power to do good”. That’s what has declared CEO Yele Bademosi in a statement.
In addition, the company assured that it does not trade crypto assets on the now bankrupt exchange. “We used the closely associated exchange, FTX, as a custodian to store a significant proportion of stablecoin investments we raised for our day-to-day operational budget”explained Bademosi.
Importantly, Nestcoin is the beneficiary of an investment from Alameda Research.
The CEO further stated that he is committed to helping the workers who will leave “to find a job elsewhere”.
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