Tech

Bundle Africa Ceases Exchange Operations To Prioritize Cashlink Platform

This move by Bundle Africa comes amidst challenges faced by several other African crypto startups.

Emmanuel Babalola, Bundle Africa CEO
Emmanuel Babalola, Bundle Africa CEO [Techcrunch]

In a surprising move, Bundle Africa, the popular social payments app for cash and cryptocurrency, has announced the closure of its exchange services after three years of operation. The company has decided to shift its focus towards the expansion of its peer-to-peer platform, Cashlink.

The announcement was made via a statement published on the company’s website Friday, 21 July. 2023. According to the statement, the decision to shut down the exchange services was taken by the company’s shareholders as part of a strategic effort to “restructure the business.” Bundle Africa has experienced remarkable growth, boasting 50,000 monthly active users on its platform, with a staggering monthly volume of $50 million on Bundle and over 3 million transactions successfully processed on Cashlink.

The company’s statement emphasized the rising prominence of Web3 and the blockchain community and highlighted the need to align payment solutions with the evolving demands of this burgeoning ecosystem. As a result, Bundle Africa has chosen to prioritize its peer-to-peer platform, Cashlink, which is better suited to cater to the growing demands of the crypto industry.

Following this announcement, certain functionalities on the Bundle platform will no longer be available to users. These include the ability to sign up on Bundle, deposit assets into their wallets, and swap assets within their accounts, except for USDT. Users are encouraged to withdraw all their funds to an exchange of their choice. The company has set August 30th, 2023, as the deadline for users to convert their holdings to USDT.

Despite the unexpected decision to shut down exchange services, Bundle Africa’s CEO, Emmanuel Babalola, took to Twitter to reassure users that their funds are safe and can be withdrawn until September 10, 2023. He further pledged the company’s commitment to providing unparalleled support to users and the community during this transitional phase.

This move by Bundle Africa comes amidst challenges faced by several other African crypto startups. Nestcoin, a Nigerian crypto startup, experienced setbacks when it held investor funds in the collapsed FTX, leading to staff layoffs. Similarly, Fluidcoins, another Nigerian crypto startup, had to be acquired by Bitfinex after failing to secure sufficient funds to sustain its operations. Additionally, Lazerpay, a web3 and crypto payment company, had to shut down after facing difficulties raising funds.

As Bundle Africa shifts its focus to Cashlink, the crypto community is keen to see how the peer-to-peer platform will evolve and address the unique payment needs within the growing African crypto market. The company’s strategic decision indicates a willingness to adapt to the changing landscape of the blockchain industry while prioritizing customer satisfaction and safety.

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