Bundle Africa, a Nigerian cryptocurrency and Web3 platform, has officially announced it will be closing down its exchange services after three years of operation.
The announcement was made in an official statement shared on its website on Friday and suggests that the decision was made by the company’s shareholders as part of a restructuring effort. The platform will no longer provide users with its exchange services and will now focus on its peer-to-peer platform, Cashlink.
Bundle Africa has achieved some significant milestones since its launch in 2020, overseeing 50,000 monthly active users and a monthly volume of $50 million on Bundle, along with over 3 million transactions on Cashlink.
In the statement, the company expressed the need to align with the growing Web3 and blockchain community, aiming to develop payment solutions that meet the ecosystem’s requirements, and Cashlink will play a central role in this endeavor.
Following the announcement, users will no longer be able to sign up on Bundle, deposit assets into their wallets, or swap assets except for USDT. Withdrawals can only be made using Cashlink. Users are encouraged to withdraw all their funds to any exchange of their choice before the 30th of August, 2023. The company assured users that their funds are safe and can be withdrawn until September 10th, and they will provide continuous support during this transition period.
This development occurs amidst challenges faced by the African crypto industry. A variety of startups like Nestcoin and Fluidcoins had to make significant adjustments due to growing financial difficulties in the space. Nestcoin in particular, a Nigerian crypto startup, had to lay off staff after holding investor funds in a collapsed FTX. Fluidcoins, also from Nigeria, was acquired by Bitfinex after unsuccessful attempts to raise funds for its operations. Additionally, Lazerpay, a web3 and crypto payment company, shut down in April, facing similar funding challenges.
Bundle Africa’s shift towards focusing on Cashlink signifies its strategic response to the changing landscape of the crypto industry in Africa. By reallocating resources to the peer-to-peer platform and adapting to the evolving needs of the blockchain community, the company aims to position itself for sustainable growth and success in the future.
