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Nigerian Web3 Startup Fires Staff, Claims Funds Are Stuck With FTX

Nestcoin, a Nigerian Web3 company that received funding from Alameda Research in 2021, revealed on November 14 that “a substantial amount of stablecoin investment” remained at FTX. The CEO of the startup believes that by laying off some employees, the company can focus on developing a more decentralized crypto future.

Utilizing FTX as Nestcoin’s Stablecoins’ Custodian
On November 14, the Nigerian Web3 startup Nestcoin informed its investors that the failed cryptocurrency exchange FTX is still holding funds meant for the company’s ongoing activities. The Web3 startup asserted that after reevaluating its financial status, the decision was made to lay off some employees.

The CEO of the business, Yele Bademosi, signed and distributed a statement asserting that Web3 did not trade cryptocurrency assets on the defunct cryptocurrency exchange. Instead, Nestcoin, which obtained funding from Alameda Research, largely utilized FTX as a custodian for its fiat currency and stablecoins.

According to Bademosi, as a custodian, we retained a large portion of the stablecoin investments we raised for our daily operational budget at the closely related exchange FTX.

A Free Cryptocurrency Future

Bademosi argued that the startup’s decision to lay off its employees was appropriate because it allows Nestcoin to “focus on establishing a more decentralized crypto future in which no one organization or person can amass sufficient power to negatively impact a young industry with the potential to do good.”

Following the news, the CEO of Nestcoin tweeted that his current objective is to assist departing colleagues in finding new employment.

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About Tina

Nigerian Web3 Startup Fires Staff, Claims Funds Are Stuck With FTXTina concentrates on all matters related to NFT and Web3. Tina uses social media to spot NFT trends and report unique news.

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