The demise of FTX has resulted in the laying off of some employees. This information was shared by the startup's CEO, Yele Bademosi, who said FTX's fall from grace affected his one-year-old startup.
There have been reports of companies with money stuck on the FTX platform. Some of them include Galois Capital, a hedge fund with half of its capital stuck at the collapsed exchange; Genesis Trading, which had about $175 million locked on the exchange; and Multicoin Capital, which has nearly 10% of its assets under. Most, if not all, of its assets are stuck in FTX, according to the latest information.
Depending on how much FTX's assets are worth, companies with money stuck on FTX may get their money back. FTX's assets ranged from $10 billion to $50 billion and its debts ranged from $10 billion to $50 billion.
Nestcoin raises $6.45M pre-seed to accelerate crypto and web3 adoption in Africa and frontier markets
A number of African startups have received venture capital from FTX and Alameda Research, along with over 200 foreign-based startups and investment firms. The $150 million Series C extension round was led by FTX. Mara, Jambo, and Bitnob were backed by Alameda Research. It's not clear if the other startups held their assets in FTX, but it's likely that they did.
Bademosi said that FTX was used as a custodian to store a significant portion of the stable coin investment. We separated our assets on the FTX exchange. While there are uncertainties, including the outcome of our assets held at FTX, we have to adjust our plans, rethink our strategy and take steps to better position ourselves for the future
In order to build, invest and operate web3 and non-custodial products for customers in frontier markets across Decentralized Finance, Bademosi has had to reduce its workforce. According to two people familiar with the matter, at least 30 employees from sub- departments will be affected by the layoffs. The people said that the remaining employees' salaries would be slashed. It has never held customer funds, and this incident has no impact on our customers financially.
The rest of Bademosi's post reads.
While this is a challenging time for us and the industry as a whole – we see this as a wake up call 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 potential to do good.
In the past few days I’ve strengthened my resolve and remain committed to “doing crypto” in line with its true spirit and founding ethos.
At Nestcoin we have a renewed sense of purpose — we realize that for crypto to truly go mainstream, we must accelerate the transition to self custody by building compelling trustless crypt products. To succeed, we will remain relentless, resourceful and flexible as we navigate these hard times.
This is a story that is evolving.
RIP to FTX?
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