Adedapo Adesanya
By Adedapo Adesanya
Nigerian crypto startup, Nestcoin, is one of the many companies affected by the crisis that hit now-defunct cryptocurrency company, FTX.
The startup in a statement signed by its CEO, Mr Yele Bademosi, said FTX’s fall affected the young startup which is just a year old, as it held its assets (cash and stablecoins) at FTX to manage operational expenses.
“Last year, Nestcoin raised capital from a range of investors, including Alameda Research. For context, Alameda’s equity is less than 1 per cent,” the statement said.
From its 23-page bankruptcy filing, FTX has more than 100,000 creditors with assets in the range of $10 billion to $50 billion and liabilities within the same range.
The statement, although intended for its investors, was shared publicly and revealed that it has laid off some employees as FTX’s demise impacted its business.
“While there are uncertainties, including the outcome of our assets held at FTX, we as a company have to adjust our plans, rethink our strategy and take steps to better position ourselves for the future.
“Unfortunately, this means saying goodbye to some of our very talented Nesters. As a leadership team, our immediate priority is to conduct this tough task in a compassionate manner and with respect to our departing colleagues,” it stated.
The company also revealed that “We were not undertaking any trading, but simply custodied our assets on the FTX exchange. While there are uncertainties, including the outcome of our assets held at FTX, we as a company have to adjust our plans, rethink our strategy and take steps to better position ourselves for the future.”
According to Tech Crunch, the layoffs will affect at least 30 employees from sub-departments, including Breach, Brunch, and MVM, a sister product that raised $3 million months ago; for those remaining, they will see their salaries cut as much as 40 per cent.
Nestcoin also said its products are decentralised finance (DeFi) protocols and non-custodial in nature; thus, it has never held customer funds, and “this incident has no impact on our customers financially.”
