Crypto: Those left behind by the fall of FTX in Africa

The crypto platform FTX, now bankrupt, has not only caused victims in the United States or Europe. Its spectacular bankruptcy had repercussions in Africa where several Africans were cheated to popularize the company’s operations.

FTX crypto services, promoted by African brand ambassadors

We know that by collapsing, the crypto platform FTX, whose trial is ongoing, had a resounding impact on its users. In fact, information that has leaked recently shows that the consequences of the collapse of this firm are much deeper than we think.

Many African users paid dearly for the trust placed in what they considered one of the most credible crypto companies on the globe. While it is difficult to estimate the number, the method used to obtain them is much more sophisticated.

You should know that like several exchanges, FTX was particularly interested in the African crypto market. This is due to the youth of its population and the latter’s increasing familiarity with digital technology.

What’s better to bait than launching a brand ambassador program? This is precisely what FTX has done with the aim of penetrating the African crypto market. A strategy which consisted of calling on students to promote FTX within their communities.

And the policy paid off since many students joined it, attracted by an attractive 30% commission on gas costs. This, plus a monthly bonus of up to $500, depending on their performance. Yet,…

African students pay the high price for the fall of FTX

Several African brand ambassadors in turmoil!

Like the majority of FTX’s crypto users, several of these brand ambassadors found themselves in trouble when the company filed for bankruptcy. Indeed, when FTX collapsed, people registered on the platform via brand ambassadors found themselves in financial turmoil.

A witness to the deployment of this crypto program in Uganda says: “I received a call from one of the ambassadors I worked with. He was crying because the users he referred to had invested N20 million thanks to him. It wasn’t just his own funds. People just thought they could save money on FTX and make money”.

In Nigeria where this program has developed particularly well, several brand ambassadors who have promoted FTX services to their communities are now experiencing fear in their stomachs. Apart from the fact that they have already lost all credibility within the latter.

Indeed, the consequences of the fall of FTX are such that certain former platform ambassadors are verbally and sometimes physically threatened. In particular by the people they had introduced into the exchange and who hold them responsible for the situation.

While there is complete doubt as to whether they will ever be able to recover their assets, this development serves as a reminder of an important fact. The crypto market is not without risks. The best weapon to protect yourself in this ecosystem remains information and education.

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