Leading Nigerian crypto platforms are on downsizing spree as markets plunge
The crypto market has been hard hit by an unprecedented fall in prices. The collapse of FTX, seen as one of the best crypto platforms shed light on the volatility of the market and the inability of existing laws to protect crypto investors.
In Nigeria, crypto companies have resorted to layoffs in a bid to remain profitable. Quidax, a company that has been in operation for four years and claims to have processed $3 billion in crypto transactions sent home a fifth of its staff last week. The employees sent home were drawn from marketing, engineering, business, and product teams.
Explanations for sending employees packing range from a drop in the value of cryptocurrencies, reduced transaction volumes and, a general drop in company revenues.
Lazerpay is yet another Nigerian crypto processing company reported to have sent a section of employees home. Company CEO Njoku Emmanuel said that they had to relieve some employees as a way of remaining afloat.
The developments were also precipitated by the startup’s failure to raise a seed round this year after a lead investor “pulled out abruptly due to market conditions and disagreement on terms.”
Nestcoin, another Nigerian crypto startup, had investments in FTX and was also a beneficiary of funding from the company. When FTX failed, Nestcoin CEO Yele Bademosi said that “rethink our strategy and take steps to better position ourselves for the future.” The company has since laid off a section of employees after revealing that $4 million of its operating capital was held with FTX.
These developments are just a few pointers of the volatility of the crypto market. The lack of proper policy and regulatory framework across the world is also contributing to the investors are subject to any time a cryptocurrency platform is challenged by market forces.
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