Connect with us

Africa

Nigerian Web3 Startup Says Funds Are Stuck With FTX, Lays Off Employees

Published

on

Nigerian Web3 Startup Says Funds Are Stuck With FTX, Lays Off Employees

Nestcoin, a Nigerian Web3 startup which got an investment from Alameda Research in 2021, revealed on Nov. 14 that it had “a significant proportion of stablecoin investment” stuck at FTX. According to the startup’s CEO, laying off some employees allows the company to focus on building a more decentralized crypto future.

Using FTX as Custodian of Nestcoin’s Stablecoins

The Nigerian Web3 startup Nestcoin informed its investors on Nov. 14 that funds earmarked for the entity’s day-to-day activities are stuck with the collapsed crypto exchange FTX. The Web3 startup said after it reevaluated its business position, a decision to let go of some of the employees was made.

https://twitter.com/YeleBademosi/status/1592144271163142145/photo/1

Advertisement

According to a statement signed and shared by the startup’s CEO Yele Bademosi, the Web3 company was not trading crypto assets on the now-defunct crypto exchange. Instead, Nestcoin — a recipient of an investment from Alameda Research — primarily used FTX as a custodian of its fiat money and stablecoins.

“We used the closely associated exchange, FTX, as a custodian to store a significant proportion of stablecoin investment we raised [for] our day-to-day operational budget,” Bademosi explained.

‘A Decentralized Crypto Future’

Concerning the startup’s decision to lay off its employees, Bademosi insisted that this was justified because it allows Nestcoin “to focus on building a more decentralized crypto future where no one organization or person can amass enough power to influence a nascent industry that has the power to do good.”

Meanwhile, in a tweet that followed the announcement, the Nestcoin CEO claimed that his desire now is to help departing workers secure employment elsewhere.

Register your email here to get a weekly update on African news sent to your inbox:

Advertisement

What are your thoughts concerning this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

Africa

What does the BIS’s report on CBDC development in Africa say?

Published

on

What does the BIS’s report on CBDC development in Africa say?

The Bank for International Settlements (BIS) has conducted a survey of nineteen central banks from Africa. In doing so, it took a closer look at the development of central bank digital currencies (CBDCs) in the continent.

The findings of the survey were compiled in a 23-page document. The same analyzed the development, motivations, and the challenges of central bank digital currencies (CBDCs) in Africa relative to other emerging and developing regions. 

Mobile money rivals CBDCs

The report published by the BIS has identified mobile money as a major rival of CBDCs in Africa. It read,

“Mobile money – ie digital payments through a mobile phone not requiring a bank account – started the transformation at the turn of the century, with African countries such as Kenya at the forefront.”

As a matter of fact, Sub-Saharan Africa accounts for two-thirds of mobile money transactions in terms of volume, and over half of active users in the world.

Advertisement

That being said, central banks in Africa believe that CBDCs will bring greater utility for the implementation of monetary policy. Almost half of the banks stated that the major driver behind the introduction of CBDCs is the provision of cash. Adopting CBDCs will help them save printing costs and the expenses incurred while transporting and storing banknotes and coins. 

The challenges associated with CBDCs

According to the survey conducted by BIS, cross-border spillovers and cyber security risks are major concerns for central banks that explore digitized currencies. These central banks are also concerned about the high operational burdens that are associated with adopting this technology. 

In the face of these challenges, the report concluded that African CBDCs should be tailored towards the unique needs of the continent. These include the cost and access associated with CBDCs and their interoperability with credit cards, mobile money, and other FPS and KYC formalities.  

IMF calls for tighter crypto-regulations in Africa

Earlier this week, the International Monetary Fund released a report, one which concluded that Africa’s crypto-markets need greater regulations. The African crypto-market is one of the fastest growing markets in the world. 

Another reason for this statement by the IMF is the collapse of FTX. According to its report, the implosion of the Bahamas-based exchange has only reiterated the need for crypto-regulations. This was done in the interest of consumer protection. 

Advertisement

The report concluded,

“Policymakers are also worried that cryptocurrencies can be used to transfer funds illegally out of the region and to circumvent local rules to prevent capital outflows. Widespread use of crypto could also undermine the effectiveness of monetary policy, creating risks for financial and macroeconomic stability.”

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Advertisement

Continue Reading

Africa

LBank Labs Establishes Blockchain And Crypto Investment Fund To Support The Development Of Web3 In Africa

Published

on

By

LBank Labs Establishes Blockchain And Crypto Investment Fund To Support The Development Of Web3 In Africa

press release

PRESS RELEASE. Internet City, Dubai, Nov. 11th, 2022 — Blockchain Crypto Investment Group, LBank Labs, announces the establishment of their new crypto investment fund targeted towards web3 development in Africa. LBank Labs plans to establish a series of regional development funds, including regions such as Korea, South East Asia, and more. This is the first of the sequence of new investment funds from LBank Labs.

Africa is one of the areas with a lot of untapped potential for blockchain expansion. With new member Czhang on board LBank Labs, the investment institution is looking globally. Czhang is currently visiting many countries in North Africa and followed by other regions in the continent. Throughout November, Czhang, as a representative of LBank Labs, will be talking with potential African collaborators. “I think the future is in Africa,” said Czhang, “in terms of blockchain adoption, LBank Labs hopes to provide support for local communities and give local projects the push that they need to start up.”

Advertisement

LBank has been pushing educational efforts in the MENA region for some time, having community managers in Nigeria, Ghana, Tunisia, and more. “Africa is a diverse place. We believe the key to blockchain development in Africa, and anywhere really, is education. Giving people the tools to understand blockchain technology will help them to see why it is such a world-changing thing. We really hope to have a strong bond with locals. ” a representative said. LBank has also expanded to other areas, recruiting community managers in Cameroon, Kenya, and so on.

About LBank Labs

LBank Labs is an independent blockchain investment institution under the top global crypto exchange LBank. LBank Labs currently has a total fund size of 50 million USDT. Registered in Asia’s crypto hub Singapore, LBank Labs includes Venture Capital, Hedge Funds, and also Fund of Funds. Since its inception, LBank Labs invested in many quality early-stage public-chain projects such as VEN and NEO. Starting in 2020, LBank Labs invested in nearly 100 ecological projects such as Polkadot, NFT, and Solana.

About LBank

LBank is one of the top crypto exchanges, established in 2015. It offers its users specialized financial derivatives, expert asset management services, and safe crypto trading. The platform holds over 7 million users from more than 210 regions worldwide. LBank is a cutting-edge growing platform that ensures the integrity of users’ funds and aims to contribute to the global adoption of cryptocurrencies.

Advertisement

Start trading now: lbank.com

Community and social media:

l Telegram l Twitter l Facebook l LinkedIn l Instagram l YouTube

Contact Details:

LBK Blockchain Co. Limited

Advertisement

LBank Exchange

[email protected]

[email protected]


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Media

Bitcoin.com is the premier source for everything crypto-related. Contact the Media team on [email protected] to talk about press releases, sponsored posts, podcasts and other options.

Advertisement
Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Continue Reading

Africa

Nigerian Currency Gains Versus US Dollar Days After Tapping All-Time Low

Published

on

Nigerian Currency Gains Versus US Dollar Days After Tapping All-Time Low

Just a few days after plummeting to its worst exchange rate against the U.S. dollar ever, the Nigerian currency was trading at around 820 units for every dollar on Nov. 8, a report has said. An economist has suggested that the Central Bank of Nigeria’s controversial currency plan is unlikely to halt the naira’s depreciation or tame inflation.

EFCC’s Crackdown on Currency Dealers

The Nigerian currency’s parallel market exchange rate versus the U.S. dollar rebounded from an all-time low — 900 units per dollar — seen at the start of the month to around 805:1 by Nov. 8. Some reports have attributed the naira’s recovery to the Economic and Financial Crimes Commission (EFCC)’s crackdown against suspected illegal foreign currency dealers.

As reported by Bitcoin.com News on Nov. 5, the naira’s latest quick-fire depreciation was prompted by the Central Bank of Nigeria (CBN)’s new 100, 200, 500, and 1,000 banknotes announcement.

Advertisement

While the central bank’s plan to replace old banknotes with redesigned banknotes has won the backing of President Muhammadu Buhari, some Nigerian experts, as well as the International Monetary Fund (IMF), have warned of the possible consequences of implementing the plan.

Exacerbating the Naira’s Woes

Yet, despite the mounting criticism and warnings, the CBN has stuck to its guns and will reportedly start issuing the new banknotes on Dec. 15 as planned. The central bank has said all the banknotes that are set to be demonetized must be returned on or before Jan. 31, 2023.

However, according to one Nigerian economist, Bismarck Rewane, for the CBN’s plan to succeed, Nigerian banks will need to exchange banknotes worth over $105 million (87 billion naira) every day. Besides exacerbating the naira’s woes, Rewane reportedly said the CBN’s currency plan will not solve Nigeria’s inflation problem.

Meanwhile, despite the naira’s fall to record levels versus the greenback on the parallel market, on Nov. 9 the currency was still pegged at around 450 per dollar on Nigeria’s official forex market.

Register your email here to get a weekly update on African news sent to your inbox:

Advertisement

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

Continue Reading

Top posts

National Bank Of Ukraine Unveils E-Hryvnia Concept National Bank Of Ukraine Unveils E-Hryvnia Concept
cbdc1 hour ago

National Bank Of Ukraine Unveils E-Hryvnia Concept

The central bank of Ukraine has presented to interested parties a draft concept of the nation’s future digital currency, the...

Manitoba Halts New Crypto Mining Projects Due To Expected High Energy Demand Manitoba Halts New Crypto Mining Projects Due To Expected High Energy Demand
Canada3 hours ago

Manitoba Halts New Crypto Mining Projects Due To Expected High Energy Demand

Authorities in Manitoba are temporarily suspending the connection of new crypto mining facilities to the power grid. The Canadian province,...

UNI is ripe for buying opportunities after a bullish crossover, but… UNI is ripe for buying opportunities after a bullish crossover, but…
Altcoins11 hours ago

UNI is ripe for buying opportunities after a bullish crossover, but…

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s...

Compound tightens its rules to prevent Aave-like exploit, details inside Compound tightens its rules to prevent Aave-like exploit, details inside
Aave12 hours ago

Compound tightens its rules to prevent Aave-like exploit, details inside

Compound DAO had voted unanimously to implement changes in the rules of the protocol This move was motivated by the...

Professional Liability Insurance for Traders Professional Liability Insurance for Traders
Uncategorized13 hours ago

Professional Liability Insurance for Traders

Professional liability insurance is a crucial protection for traders, allowing them to safeguard their investments and clients. In addition, without...

Data Shows There’s No Profits Left For Bitcoin Miners That Can’t Obtain Cheap Electricity, Run Efficient Mining Rigs Data Shows There’s No Profits Left For Bitcoin Miners That Can’t Obtain Cheap Electricity, Run Efficient Mining Rigs
Antminer S19 Pro+ Hyd.13 hours ago

Data Shows There’s No Profits Left For Bitcoin Miners That Can’t Obtain Cheap Electricity, Run Efficient Mining Rigs

During the last few weeks bitcoin’s cost of production has been higher than the leading crypto asset’s spot market value...

PancakeSwap’s progress may not sit well with investors, is CAKE the culprit PancakeSwap’s progress may not sit well with investors, is CAKE the culprit
Altcoins14 hours ago

PancakeSwap’s progress may not sit well with investors, is CAKE the culprit

CAKE planning to bring a new Syrup Pool/Farm on PancakeSwap However, days ahead might get harder as metrics and indicators...

MoneyGram Review MoneyGram Review
Uncategorized15 hours ago

MoneyGram Review

1 Minute Review MoneyGram is one of the largest money transfer services in the world, with over 400,000 agent locations....

Where Is The Ethereum Price Headed Next After Clearing This Resistance Where Is The Ethereum Price Headed Next After Clearing This Resistance
Crypto15 hours ago

Where Is The Ethereum Price Headed Next After Clearing This Resistance

The Ethereum price has finally been able to break above the $1,233 resistance mark. Over the last 24 hours, the...

Telegram to build non-custodial wallets and decentralized exchanges, says CEO Pavel Durov Telegram to build non-custodial wallets and decentralized exchanges, says CEO Pavel Durov
adoption15 hours ago

Telegram to build non-custodial wallets and decentralized exchanges, says CEO Pavel Durov

Telegram to build non-custodial wallets and decentralized exchanges, says CEO Pavel Durov Soumen Datta · 1 hour ago · 1...

ECB Blog Post Insists This Is ‘Bitcoin’s Last Stand,’ Officials Claim BTC Is Headed Toward ‘Irrelevance’ ECB Blog Post Insists This Is ‘Bitcoin’s Last Stand,’ Officials Claim BTC Is Headed Toward ‘Irrelevance’
"Bitcoin’s Last Stand"15 hours ago

ECB Blog Post Insists This Is ‘Bitcoin’s Last Stand,’ Officials Claim BTC Is Headed Toward ‘Irrelevance’

On Wednesday, Nov. 30, 2022, a blog post published by the European Central Bank (ECB) discusses bitcoin and the authors...

XeggeX sets industry standards for exchange transparency XeggeX sets industry standards for exchange transparency
Exchanges16 hours ago

XeggeX sets industry standards for exchange transparency

Disclosure: This is a sponsored post. Readers should conduct further research prior to taking any actions. Learn more › The...

Binance Coin (BNB), Polkadot (DOT), And Bitgert (BRISE) Price Prediction This December – Investors Will Love This Binance Coin (BNB), Polkadot (DOT), And Bitgert (BRISE) Price Prediction This December – Investors Will Love This
Uncategorized16 hours ago

Binance Coin (BNB), Polkadot (DOT), And Bitgert (BRISE) Price Prediction This December – Investors Will Love This

Binance Coin (BNB), Polkadot (DOT), and Bitgert (BRISE) Price Prediction This December – Investors Will Love This The last month...

Coinbase Drops XRP & Other Tokens, Cites Low Activity Coinbase Drops XRP & Other Tokens, Cites Low Activity
Coinbase17 hours ago

Coinbase Drops XRP & Other Tokens, Cites Low Activity

As the FTX saga continues, all eyes are on crypto exchanges: Coinbase, Crypto.com, Binance and the like all have hefty...

Crypto exchange Kraken to start layoffs as crypto winter persists Crypto exchange Kraken to start layoffs as crypto winter persists
crypto exchange17 hours ago

Crypto exchange Kraken to start layoffs as crypto winter persists

Kraken plans to lay off nearly 30 percent of its overall headcount because of crypto winter The company is providing...

Biggest Movers: LTC Nears 6-Month High, As Near Rebounds From Recent Lows Biggest Movers: LTC Nears 6-Month High, As Near Rebounds From Recent Lows
Analysis17 hours ago

Biggest Movers: LTC Nears 6-Month High, As Near Rebounds From Recent Lows

Litecoin has been a notable mover on Nov. 30, as the token edged closer to a recent six month high....

Kraken to layoff 1,100 people to ‘adapt to current market conditions’ Kraken to layoff 1,100 people to ‘adapt to current market conditions’
Bear Market18 hours ago

Kraken to layoff 1,100 people to ‘adapt to current market conditions’

Kraken to layoff 1,100 people to ‘adapt to current market conditions’ Samuel Wan · 7 hours ago · 1 min...

Bitcoin Bearish Signal: NVT Golden Cross Enters Sell Zone Bitcoin Bearish Signal: NVT Golden Cross Enters Sell Zone
Bitcoin18 hours ago

Bitcoin Bearish Signal: NVT Golden Cross Enters Sell Zone

On-chain data shows the Bitcoin NVT golden cross has now entered into the “sell” zone, something that could be bearish...

Trending

Free Bitcoin MiningEarn from $50 to $75 daily with just your phone