Nestcoin, a Nigerian Web3 startup that received funding from Alameda Research in 2021, revealed on November 14 that a “substantial proportion of stablecoin investment” remains in FTX. According to the startup CEO, laying off some employees will allow the company to focus on building a more decentralized cryptocurrency future.
Using FTX as a Custodian for Nestcoin Stablecoins
Nigerian Web3 startup Nestcoin notified investors on Nov. 14 that funds allocated for the entity’s day-to-day activities were stuck on the failed cryptocurrency exchange FTX. Web3 startup said the decision was made to let some employees go after reassessing its business position.
According to a statement signed and shared by the startup’s CEO Yele Bademosi, Web3 did not trade cryptocurrencies on the now-defunct cryptocurrency exchange. Instead, Nestcoin, which is backed by Alameda Research, primarily used his FTX as a fiat currency and stablecoin custodian.
“We have used our closely related exchange, FTX, as a custodian to store the majority of our raised stablecoin investments. [for] It’s our daily operating budget,” explains Bademosi.
“The Future of Decentralized Cryptography”
Regarding the startup’s decision to lay off its employees, Bademosi argued that this is justified as Nestcoin “can focus on building a more decentralized cryptocurrency future.” do good “
Meanwhile, in a tweet following the announcement, Nestcoin’s CEO claimed that his current desire was to help displaced workers secure jobs elsewhere.
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