Nigerian Web3 startup Nestcoin had to accept the fate that befell them. Most recently they informed their investors on November 14 that the funds allocated for the day-to-day activities of the entity were stuck following the collapse of the FTX crypto exchange. Nestcoin issued the notification after it reassessed its business position, the decision to let go of some employees was made.
According to a statement signed and shared by the company's CEO, Yele Bademosi that their company does not trade crypto assets on the FTX exchange. Nestcoin is the recipient of investment from Alameda Research which uses FTX as its fiat and stablecoin custodian.
"We use a closely related exchange, FTX, as a custodian to hold a large portion of the stablecoin investments we collect for our daily operating budget," Bademosi explained.
Regarding the company's decision to lay off its employees, Bademosi insisted that this was justified as it allowed Nestcoin "to focus on building a more decentralized crypto future".
Meanwhile, in a tweet after the announcement, Nestcoin's CEO claimed that his current intention was to help the laid-off workers find jobs elsewhere.
