Since CoinDesk’s investigation into FTX, which opened the eyes of the crypto community to the deleterious situation of FTX, various revelations have continued to follow. The latest is an unusual system put in place by exchange officials. It consists of employing African students, who must in particular convince their colleagues to register on the exchange and carry out transactions there. This, in return for commissions. Decryption.
Student recruitments on the crypto platform
According to results of an investigation conducted by Business Insider, FTX was carrying out somewhat curious activities in Africa. They consisted of encouraging students to recruit new investors on the platform, particularly in academia. A system quite similar to that which consists, for brands, of having ambassadors. For information, the survey was conducted in Nigeria.
Ambassadors must recruit new users on the exchange and ensure the crypto or even blockchain education of recruits. They must also ensure that recruits deposit funds or transact on the platform. In exchange, those who provided the best results could earn commissions of up to 40% of the amount traded on the platform, through them.
CNBC reports that prior to FTX’s collapse, many of the ambassadors had no idea of the exchange’s precarious situation. Therefore, when the company collapsed in the last quarter of 2022, the Ambassadors were still actively recruiting. So, just like other FTX users, they also lost money.
But overall, the situation does not seem to affect the appetite of Nigerian students for crypto. While the majority of them have lost money, they still remain confident about the future of digital assets. Imran Yahya, FTX Ambassador at Bayero University in Nigeria, said: “FTX’s collapse only proved that no company is too big to fail. However, I plan to be more careful, the next times”.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
