Lazerpay, a Nigerian cryptocurrency and Web3 startup, has announced that it will cease operations due to its inability to secure adequate funding. The company’s co-founder and CEO, Njoku Emmanuel, stated on Twitter that Lazerpay has failed to close a successful funding round, leading to the decision to shut down the business. Emmanuel also revealed that the company’s intellectual property (IP) is up for sale and that Lazerpay is open to offers from companies interested in purchasing it.
Lazerpay was launched in 2021 with the objective of helping merchants convert their cryptocurrency to fiat and vice versa. The startup quickly gained traction, and by the time of its closure, it had reportedly helped more than 3,000 businesses accept payments in stablecoins. Additionally, Lazerpay had established a loyal community of individuals who supported its operations.
Despite its achievements, Lazerpay’s inability to secure adequate funding meant that it could not continue operating. Emmanuel stated that the company’s management is now working with members of its community to ensure that they can withdraw their funds before the end of April. The CEO also expressed his optimism about the future of cryptocurrency.
However, Lazerpay’s decision to shut down has raised concern about the difficulty that African crypto startups face in securing funding. A report in Techcabal suggests that Lazerpay may have failed to raise funds due to investors’ reluctance to support African startups. The report also notes that Lazerpay’s attempts to resize its business by laying off some employees in November 2022 proved that such a step was not enough to save the company.
Despite the challenges faced by Lazerpay, the African crypto industry is showing remarkable growth potential. In recent years, African countries have become attractive markets for cryptocurrency, with startups and investors alike exploring opportunities on the continent. However, like many other emerging markets, the lack of regulatory clarity and infrastructure limits the growth prospects and the potential for investors.
Moreover, while cryptocurrencies offer a number of advantages over traditional finance, they also come with their own set of challenges. For instance, the volatility of cryptocurrency prices can lead to fluctuations in the value of the funds merchants receive. Additionally, the lack of regulatory clarity in many African countries makes it difficult for companies to operate in the region.
As the African crypto industry continues to grow, it is crucial that governments and regulators work together to develop a supportive framework for the sector. This includes creating clear guidelines and regulations for cryptocurrency trading and providing startups with access to funding and infrastructure. If these challenges can be addressed, the African crypto industry can continue its impressive growth trajectory and provide businesses with a reliable and secure way to manage their finances.
In conclusion, Lazerpay’s decision to cease operations is a setback for the African crypto industry, but it also highlights the challenges faced by startups in the region. While the sector is showing growth potential, it requires supportive regulatory frameworks and funding to achieve its full potential. By working together, African governments, regulators, and startups can overcome these challenges and unleash the full potential of the region’s crypto industry.
