The Nigerian Web3 startup Nestcoin has reportedly secured a total of $1.9 million in funding from both existing and new investors. The capital raised will be used to bolster Nestcoin’s finances and further develop the startup’s non-custodial wallet.
Impact of FTX’s Collapse on Nestcoin
The Nigerian Web3 startup Nestcoin recently secured $1.9 million via a strategic funding round which was led by Hashed Emergent, a report has said. Existing investors that participated in the round include Alter Global, Magic Fund, CMT Digital, and 4DX Ventures while Adaverse and Base Ecosystem Fund were the two new investors.
The startup’s latest fundraising success came almost a year after it lost access to a stash of stablecoins which were held at the now defunct cryptocurrency exchange FTX. As reported by Bitcoin.com News in November 2022, Nestcoin initially responded to the loss of access to digital assets worth millions of dollars by reducing its employee headcount.
According to a Techcrunch report, the loss of access to funds also forced Nestcoin to re-evaluate its business model. Commenting on what the re-evaluation process has done for the startup, Yele Bademosi, the CEO of Nestcoin, said:
“During this transition period, we were trying to make the best decision when there were no good decisions. It helped that we were open and transparent with our investors and community. We had to make tough decisions regarding cutting product lines. We had to transition from a venture studio and investment holding company to a single-product company.”
Meanwhile, the report revealed that Nestcoin is planning not only to use the raised funds to bolster its finances but also to develop its non-custodial wallet further.
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