Nigerian Crypto Startup Lazorpay Shutdown Due to Lack of Funds
Lazorpay, a Nigerian Web3 and crypto company, announced to cease operations.
According to a Twitter post, Lazorpay shut down the feature because it was unable to secure funds in a funding round.
In an official release, Emmanuel Njoku, CEO of Lazorpay, expressed that he is immensely grateful for the company’s connections and significant impacts in the crypto sector. The company tried hard to survive and serve the industry with its utmost best but unfortunately the company is planning to shut down permanently due to lack of funds.
Lazorpay fired its employees in November 2022 and laid them off after failing to secure funds, and leading investors withdrew their hands. Lazorpay remains focused on solving the problems faced by their users till now.
The fintech startup instructed its existing users to withdraw their assets before April 2023 ends. In addition, this company invites national and multinational crypto-focused companies to purchase its intellectual properties.
Lazorpay was developed by Emmanuel Njoku, Abdulfatai Suleiman and Prosper Ubi in 2021. The goal behind the development of Lazorpay was to promote the global acceptance of crypto and to develop a gateway where customers can quickly transfer stablecoin to the merchants.
The CEO of Lazorpay said the company has partnerships with more than 3,000 store owners/merchants and processes about $1 million in transactions daily. According to Crunchbase data, Lazorpay raised $100,000 in its seed funding round, with Nestcoin and Musha Ventures leading the investment.
Many more crypto startups are striving for funds, but due to dozens of unprecedented events in the last three years, investors are afraid to invest in budding companies. Earlier in 2022, the FTX collapse touched the entire crypto industry.
If events like FTX and Luna are repeated in the sector, crypto adoption will decline. The only feature that attracts the user towards crypto is its decentralization and anonymity feature.
Nigeria needs to secure the technological infrastructure and know how to face looming challenges to make the digital currency successful. Citizens should also be informed about unfavorable situations that may arise.
It is believed that the collapse of FTX and Luna broke the confidence of investors and as of now it is difficult for investors to trust crypto. Most importantly, to regain the trust of crypto enthusiasts and users again, leading firms must ensure a high level of security and maintain all other aspects that are the foundation of crypto.
Disclaimer
The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
