3 - 5 minute read
In breaking news, Lazerpay, the Nigerian crypto and Web3 company, has announced the end of its operations. The startup, founded by Emmanuel Njoku, Abdulfatai Suleiman, and Prosper Ubi, in October 2021, was geared towards the adoption of crypto assets globally. Lazerpay enabled businesses to accept stablecoin payments from customers internationally.
However, in a recent statement, the CEO of Lazerpay, Emmanuel Njoku, communicated the start-up’s unfortunate closure. Njoku stated that this was due to the failure of the company to raise funds in a recent funding round. The inability to secure funds ultimately led to the company’s present state of closure.
“We fought hard to keep the lights on for as long as possible, but unfortunately, we are now at the point where we need to shut down,” Njoku said in his statement.
It is worth noting that this recent development comes after Lazerpay earlier experienced rounds of layoffs in November 2022. These layoffs were as a result of a shortfall in funds raised from investors.
Despite the closure announcement, Lazerpay seeks to ensure that it has a seamless transition for its customers. The company has stated its renewed focus on resolving any outstanding user issues. Thus, it has encouraged businesses to withdraw their funds from the platform via bank or crypto payout options before April 30, 2023. Furthermore, the start-up is looking to sell its intellectual property to interested companies.
Lazerpay boasts of over 3000 businesses onboarded onto the platform, with transactions summing up to over $1 million so far. The company’s closure comes as a significant shock to the Nigerian crypto community, once again revealing the challenges faced by crypto start-ups on the African continent.
— njoku.eth 🙂 🟢 🟡 🔴 (@njokuScript) April 13, 2023
The difficulties faced in Africa’s crypto space have been highlighted in recent years, with foreign investment in Nigerian cryptocurrency, in particular, at an all-time low. However, a few crypto payment start-ups like Nairaex, which serves as an active Bitcoin exchange in Nigeria, are still thriving.
The Bottom Line
The sudden shutdown of Lazerpay is undoubtedly a tough blow to the budding Nigerian crypto space. The inability to raise funds during their recent funding round also points to the struggles faced by crypto start-ups in Africa. However, it is still encouraging to note that a few other crypto payment start-ups are still thriving, such as Nairaex. Thus, while this situation is disheartening, it is not a sign that the Nigerian cryptospace is entirely doomed.
