Amidst a wave of crypto platform shutdowns that have left Nigerian businesses grappling with uncertainty, Bundle Africa, a leading social payments app for cash and cryptocurrency, has made a surprising announcement.
After three years of successful operations, the company has decided to shut down its exchange services, leaving many in the Nigerian crypto community pondering the implications of this strategic move.
This development has evoked memories of a similar event when Paxful exited the market in April, highlighting the gravity of the decision.
Bundle Africa attributes the shutdown to a crucial need for “business restructuring,” and the factors that led to this pivotal decision.
Furthermore, how the company plans to adapt by shifting its focus towards the peer-to-peer platform, Cashlink
A Strategic Pivot to Cashlink
Bundle Africa, in a statement published on its website, revealed that the decision to cease its exchange services was initiated by its shareholders. The company aims to concentrate its resources and energy on the growth and development of Cashlink, a peer-to-peer platform tailored to cater to the evolving needs of the growing Web3 and blockchain communities.
By focusing on payment solutions that align with this ecosystem, Bundle Africa intends to stay relevant in a rapidly changing market.
Notable Achievements and User Base
Throughout its three-year run, Bundle Africa achieved significant milestones. The company reported an impressive user base of 50,000 monthly active users and facilitated a monthly transaction volume of $50 million on its exchange platform.
Additionally, its peer-to-peer platform, Cashlink, recorded over 3 million transactions. These accomplishments reflect the company’s initial success and demonstrate its potential in the digital payment space.
Transition and User Guidelines
Following the announcement of the shutdown, several operational changes were introduced. Users will no longer be able to register on the Bundle platform, deposit assets into their wallets, or perform asset swaps (except for USDT).
To facilitate a smooth transition, the company has advised its users to withdraw their funds to any exchange of their choice before the 30th of August, 2023. The ability to convert to USDT will be available until this date.
Safekeeping of User Funds
Understandably, the sudden decision to shut down exchange services may raise concerns among Bundle’s user base. To address these concerns, the company’s CEO, Emmanuel Babalola, assured users via a tweet that their funds are safe and can be withdrawn between the announcement date and the 10th of September, 2023. This pledge aims to provide reassurance and build trust during the transition period.
Challenges in the African Crypto Industry
Bundle Africa’s decision to shut down its exchange services comes amidst a challenging time for the African crypto industry.
The continent has witnessed several startups facing financial difficulties, with some forced to close their operations or lay off staff. This harsh climate has been partially attributed to difficulties in raising funds and heightened market volatility.
One of the hurdles confronting Emmanuel Babalola in the crypto realm is the prevalent misconception held by some individuals about cryptocurrencies, he said in April 2022.
Unfortunately, many Africans lack sufficient information about crypto, leading them to unfairly label it as a scam. However, he is dedicated to altering this narrative by actively promoting crypto education across various platforms.
Regarding the challenges posed by the crypto ban, Babalola and his team have successfully navigated this obstacle by employing a peer-to-peer (p2p) approach. Through this method, they have found ways to continue crypto transactions despite the ban.
Regulation
Although Bundle Africa did not cite regulation as one of the reasons for shutting down, it’s important to note that cryptocurrencies and crypto-related services often operate in a regulatory gray area in many countries, including Nigeria.
Governments may implement sudden changes in regulations or be slow to provide clear guidelines, making it challenging for crypto platforms to comply with the law effectively. Similarly, when Paxful shut down in April, it cited the regulatory environment as one of the reasons.
Future
Bundle Africa’s decision to shut down its exchange services after three years of operations marks a significant shift in its business strategy.
The company’s focus on Cashlink, a peer-to-peer platform catering to the growing Web3 and blockchain community, showcases its adaptability and determination to remain relevant in a dynamic industry.
As users withdraw their funds and the company undergoes this transition, maintaining transparency and offering unparalleled support will be crucial in winning the trust and confidence of its users and the crypto community at large.
Only time will tell how this strategic pivot unfolds and what the future holds for Bundle Africa and Cashlink.
