In November 2022, African web3 startup Nestcoin laid off an unspecified number of employees following the collapse of the FTX cryptocurrency exchange. The company, which had raised a $6.45 million pre-seed round, held a significant portion of its operational assets—cash and stablecoins—in FTX to manage day-to-day expenses. As FTX's downfall left Nestcoin's funds trapped, the financial strain forced the startup to reduce its workforce. This event highlights the broader contagion risk within the crypto industry, as numerous firms faced similar exposures during the FTX bankruptcy.
