Nigerian crypto startup Lazorpay shuts down due to lack of funds

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Lazorpay, a Nigerian web3 and crypto company, has announced that it is shutting down its operations.

According to a post on Twitter, Lazorpay shut down its feature because it failed to raise funds during a funding round.

In an official statement, Emmanuel Njoku, the CEO of Lazorpay, said he was extremely grateful for his company’s connections and significant impacts in the crypto industry. The company has been trying hard to survive and serve the industry as best it can, but unfortunately the company is planning to shut down permanently due to lack of funds.

Lazorpay laid off its employees in November 2022 and fired them after it failed to raise funds, and its major investors pulled out. Lazorpay is always focused on solving the problems encountered by its users so far.

The fintech startup has asked its existing users to withdraw their assets before the end of April 2023. Moreover, this company invites national and multinational crypto-focused companies to buy their 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 global crypto acceptance and develop a gateway through which customers can quickly transfer stablecoins to traders.

The CEO of Lazorpay said that the company has collaborations with over 3000 merchants/merchants and processes approximately $1 million in transactions per day. According to data from Crunchbase, Lazorpay raised $100,000 in its seed funding round, and Nestcoin and Musha Ventures led the investment.

Many other crypto startups are looking for funds, but due to dozens of unprecedented events over the past three years, investors are afraid to invest in budding companies. Earlier in 2022, the collapse of FTX shook the entire crypto industry.

If events like FTX and Luna are repeated in the industry, crypto adoption will decline. The only feature that attracts the user to crypto is its feature of decentralization and anonymity.

Nigeria must ensure the technological infrastructure and know how to meet the challenges that lie ahead to ensure the success of the digital currency. Citizens should also be informed of adverse situations that may arise.

The collapse of FTX and Luna is believed to have shattered investor confidence, and at present, it is difficult for investors to trust the crypto. More importantly, to regain the trust of crypto enthusiasts and users, large companies must ensure a high level of security and maintain all other aspects that are the basis of crypto.

Disclaimer

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

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