Grace Ashiru
The current prolonged downturn in the cryptocurrency market has negatively impacted numerous crypto startups, even those with significant funding. Many of these startups are now facing the tough decision to downsize or cease operations altogether due to these adverse market conditions.
One recent case is Vibra, a crypto trading platform focusing on Africa, which had successfully raised $6 million from venture capital funding backed by entities including Lateral Frontiers and Dragonfly Capital. However, Vibra has had to discontinue its services across several African nations, namely Ghana, Kenya, and Nigeria.
Despite claims by one of its co-founders that only Nigerian customers would be impacted, information obtained from Vibra’s Telegram channel and statements from both current and former employees tell a different story. These sources, including employees who faced a choice between resignation and termination, indicate that Vibra is shutting down across all its operations in Africa.
An anonymous employee pointed out that issues with revenue generation contributed to Vibra’s troubles. This problem highlights a broader challenge facing numerous ambitious crypto startups in Africa in 2023. These startups are struggling significantly due to the widespread crypto market downturn.
In a related report, Techloy covered the collapse of the Ghanaian fintech startup Dash. This startup, despite raising over $86 million in five years, failed due to corporate governance issues and alleged fraud at the founder level.
