Bundle Africa, a mobile application facilitating social payments for both cash and cryptocurrency, has ceased its crypto exchange operations services, and instead, shift its focus to Cashlink, its peer-to-peer platform.
Important News🚨🚨
We're saying goodbye to the exchange part of our operations and focusing on growing Cashlink as a payment solution for Web 3.⬇️⬇️Read more in our bio. pic.twitter.com/YhvCW4OI6h
— Bundle (@BundleAfrica) July 21, 2023
This decision, which comes after a successful three-year run, was reportedly made by shareholders in order to restructure the business.
Bundle Africa has amassed 50,000 monthly active users and achieved a remarkable $50 million monthly transaction volume. Moreover, Cashlink has seen significant success, surpassing 3 million transactions.
In a statement, Bundle said:
“As Web3 and the blockchain community continue to grow, there is a need to focus on payment solutions that meet the ecosystem’s needs, which is the plan with Cashlink.”
As per the recent announcement, users will no longer have the option to register on the Bundle platform. Additionally, they will be unable to deposit assets into their Bundle wallets, perform asset swaps within their wallets (except for USDT), or make withdrawals using Bundle. Instead, users are advised to withdraw all their funds to a preferred exchange platform of their choice.
The company says that the final date for users to convert their assets to USDT is August 30, 2023. After this date, the option to convert assets will no longer be available. Therefore, users are encouraged to complete their asset conversions before the specified deadline.
“While this is unprecedented, we’d like users to know funds are safe and can be withdrawn between now & September 10 2023. We will continue to provide our users and the community with unparalleled support during this time, even as the business transitions to Cashlink and other services,” said Emmanuel Babalola, CEO, Bundle Africa.
Bundle’s decision to halt its operations coincides with a challenging period for the African cryptocurrency industry. Several incidents have raised concerns and impacted crypto startups in the region:
- Nestcoin, a Nigerian crypto startup, faced difficulties when it held investor funds in the now-collapsed FTX exchange. As a result, the company had to lay off its staff in 2022, likely due to the losses incurred.
- Another Nigerian crypto startup, FluidCoins, struggled to secure funds to sustain its operations and was ultimately acquired by Bitfinex in February 2023.
- LazerPay, a Web3 and crypto payment startup, shut down its services in April 2023. Prior to this decision, the founder, Njoku Emmanuel, had publicly shared the challenges they were facing in raising funds for the startup
These incidents illustrate the complexities and risks associated with operating cryptocurrency ventures in the African market. The industry’s volatility and funding difficulties have posed significant challenges for startups seeking stability and growth.
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