When there’s a disaster – a warehouse goes up in flames – then the claims of what had been lent into that warehouse just the day before – no, really! – mount. To the extent that they wouldn’t have all fitted into the warehouse. But it does aid the books in all the other warehouses in balancing.
African web3 startup Nestcoin has laid off some employees as FTX’s demise impacted its business. This information was shared by the startup’s CEO, Yele Bademosi, who, in a tweet, said FTX’s fall from grace affected his one-year-old startup, which held assets (cash and stablecoins) in the now-defunct crypto exchange to manage operational expenses.
Since Sam Bankman-Fried’s crypto empire — made up of FTX, Alameda Research, and FTX Ventures — collapsed last week, there have been various reports of companies whose money are stuck on FTX, its crypto exchange platform.