Web3 startup Nestcoin declares it held its assets in FTX and lays off employees

African Web3 startup Nestcoin has laid off its employees as a result of the FTX demise.

By Staff

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As a result of FTX’s collapse, African web3 startup Nestcoin has laid off some of its employees. Yele Bademosi, the CEO of the startup, shared this in a tweet stating that his one-year-old company was impacted by FTX’s downfall since it had assets including cash and stablecoins in the now-defunct crypto exchange to manage operational costs.

Since Sam Bankman-Fried’s crypto empire, made up of FTX, Alameda Research and FTX Ventures collapsed last week, there have been various reports of companies whose money is stuck in FTX, its crypto exchange platform. Some of them include Galois Capital, a hedge fund with half of its capital stuck at the collapsed crypto exchange; Genesis Trading, which had about $175 million locked on the crypto exchange; and Multicoin Capital, the famed crypto and web3 venture capital firm that has nearly 10% of its assets under management trapped.

Nestcoin has joined the growing list of companies whose majority assets are stuck in FTX.

Several reports claim that depending on how much FTX’s assets wind up being worth, companies with money locked on FTX could be able to receive their money back. According to its 23-page bankruptcy filing, FTX has more than 100,000 creditors, assets between $10 billion and $50 billion, and liabilities in the same range. It also has more than 100,000 creditors.

Nestcoin, which Bademosi described as a venture collective, is one of a handful of African startups that have received venture capital from FTX and Alameda Research, alongside 200+ foreign-based startups and investment firms, including Circle and Sequoia Capital. 

FTX, also led a $150 million Series C extension round in Chipper Cash, an African cross-border payments company. Alameda Research, on the other hand, has backed Nigeria- and Kenya-based web3 company MARA, South African crypto exchange startup VALR, Congolese web3 startup Jambo, and Nigerian crypto exchange platform Bitnob.

 It’s still unclear if these other startups held their assets in FTX, but there’s a slight chance that might be the case, given what’s come to light with Nestcoin, even though Alameda Research, its investor, has less than 1% equity.

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