Nigerian crypto start up, Nestcoin confirms loss of stable coins to FTX collapse

Nigerian crypto start up, Nestcoin confirms loss of stablecoins to FTX Collapse

 

Nestcoin, a Nigerian cryptocurrency business, has stated that it lost its stablecoins due to the collapse of FTX, the world’s second-largest cryptocurrency exchange.

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Bankman-Fried resigned as CEO of FTX last week, after the company, along with over 100 associated entities, filed for bankruptcy in the aftermath of a liquidity issue that led to the collapse of FTX, one of the world’s largest crypto exchanges.

Bankman-Fried claimed in a statement that the company saw $5 billion in withdrawals in one day after rival Binance CEO Changpeng Zhao declared that his company will liquidate all of its interests in the FTX crypto coin.

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The price of FTX’s token fell 86 per cent in three days following the withdrawals and sent bitcoin, ethereum and shares of exchange Coinbase tumbling below 20 per cent.

Tuesday saw a brief attempt by Binance to buy FTX in order to help with the liquidity crisis. However, the company later withdrew from the deal due to “due diligence” and news stories about improper handling of customer funds

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