The collapse of the once-beloved cryptocurrency exchange, FTX, is having an impact on some fintech companies in Africa.

Days after FTX filed for Chapter 11 bankruptcy protection in the United States, Nestcoin, a Nigerian web3 startup announced that it was laying off some of its employees as the firm held its assets (cash and stablecoins) on FTX. This was “to manage our operational expenses,” the startup said.

Nestcoin, which was launched in November 2021, explained that it raised capital from a range of investors last year, including Alameda Research, a quantitative trading firm and corporate sibling of FTX.

(by Solomon Oladipupo)