Nigerian social payments platform, Bundle, has announced its plans to discontinue its crypto exchange services and shift its focus towards its peer-to-peer platform, Cashlink. The decision was made by the company’s shareholders, who believe that the future lies in payment solutions that cater to the growing Web3 and blockchain community.
In a recent blog post, Bundle stated, “We will cease operations of its exchange services as part of the Shareholders’ decision to restructure the business to focus on Cashlink.” The company, founded by Yele Bademosi in 2020, quickly gained popularity, attracting 50,000 monthly active users and processing a monthly volume of $50 million.
However, with the rise of Cashlink and its impressive record of over 3 million transactions in less than two years, Bundle’s shareholders saw an opportunity to pivot their business towards this burgeoning market. As Web3 and the blockchain community continue to grow, there is a need to focus on payment solutions that meet the ecosystem’s needs, which is the plan with Cashlink.
As a result of this strategic shift, users will no longer be able to sign up for the platform, deposit assets into their Bundle wallets, or swap assets (with the exception of Tether). Furthermore, if users do not have Nigerian naira or any other fiat currency in their Bundle wallets, they will also be unable to withdraw funds using Cashlink.
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To avoid any inconvenience, Bundle has advised all users to withdraw their assets from the app before September 12, 2023. Users in Nigeria, Ghana, Kenya, and other Francophone countries can transfer their funds from Bundle to any preferred exchange. In Nigeria, users have the option to withdraw naira using Cashlink or transfer funds to their bank accounts through P2P express.
This move by Bundle comes in the wake of the Nigerian Securities and Exchange Commission’s (SEC) order for Binance, the world’s largest cryptocurrency exchange by trading volume, to cease operations in the country. The regulator declared Binance’s operations in Nigeria as “illegal” and stated that the exchange was neither registered nor regulated by the commission.
Nigeria’s central bank had previously banned banks and financial institutions from facilitating transactions in digital currencies in 2021. Despite the ban, residents in Africa’s most populous country still make up the largest volume of digital token transactions done on peer-to-peer trading platforms outside of the United States.
The decision by Bundle to discontinue its crypto exchange services and focus on its peer-to-peer platform aligns with the changing landscape of the Nigerian crypto market. With regulatory uncertainty and restrictions, companies are adapting their business models to cater to the evolving needs of the community.
Cashlink, Bundle’s peer-to-peer platform, provides users with a seamless way to send and receive money, making it an attractive solution for the Web3 and blockchain community. By prioritizing Cashlink, Bundle aims to provide a payment solution that aligns with the growing ecosystem and addresses the needs of its users.
While the pivot away from crypto exchange services may come as a surprise to some, it reflects the dynamic nature of the crypto industry and the need for companies to adapt and evolve. Bundle’s decision to focus on Cashlink demonstrates its commitment to staying at the forefront of the Nigerian payment solutions market and catering to the demands of the Web3 and blockchain community.
With Bundle’s impressive user base and the proven success of Cashlink, it will be interesting to see how the company continues to innovate and shape the payment solutions landscape in Nigeria. As the crypto industry evolves and regulatory frameworks become clearer, companies like Bundle will play a crucial role in providing secure and user-friendly platforms for individuals and businesses to transact in digital currencies.
In conclusion, Bundle’s decision to cease its crypto exchange services and shift its focus towards Cashlink demonstrates the company’s commitment to meeting the needs of the growing Web3 and blockchain community. By providing a user-friendly and secure peer-to-peer platform, Bundle aims to be at the forefront of the Nigerian payment solutions market. As the crypto industry continues to evolve, companies like Bundle will play a vital role in shaping the future of digital transactions in Nigeria and beyond.
