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Nestcoin raises $6.45M pre-seed to accelerate crypto and web3 adoption in Africa and frontier markets – TechCrunch

Nestcoin raises $6.45M pre-seed to accelerate crypto and web3 adoption in Africa and frontier markets – TechCrunch
Written by Noah Roy

Africans and people in emerging markets have missed the first set of opportunities that technological advances have made available to the world. Computers, the Internet, financial technology, artificial intelligence, any technology you can name it (With the exception of mobile technology), people in these areas have always had to play catch-up.

But new technologies such as encryption and Web3 offer hope for Africans to play a big role in shaping themselves in the years to come. Nestcoin, a company founded last November that builds, operates and monetizes 3 web applications, wants to be pivotal in this transformation and has raised $6.45 million in its preliminary round for this purpose.

The cryptocurrency market in Africa has grown by 1,200% to 105.6 billion dollarsAnd Between July 2020 and June 2021, according to research by New York-based research firm Chainalysis. Regional inflation, weak currencies, high unemployment rates and economic uncertainty are two reasons behind this increased adoption. As these issues are not leaving Africa anytime soon, we should expect stronger cryptocurrency growth despite the efforts of many governments to stifle it.

Peer-to-peer transactions and retail are some of the biggest drivers of crypto adoption on the continent. Before starting Nestcoin, co-founders Yele Bademosi and Taiwo Orilogbon spearheaded the mission of Bundle Africa, one of the continent’s well-known cryptocurrency exchanges.

Bademosi was the director of Binance Labs in Africa, where he oversaw the incubation and development of blockchain projects, when he decided to start Bundle as CEO in 2019. Orilogbon was the company’s chief technology officer.

Embracing Bundle within the ecosystem of the largest cryptocurrency exchange, Bademosi had lofty ambitions for the company. “The goal was to have a presence in over 30 African countries and have millions of users,” he told TechCrunch in an interview.. By the time he left, three years later, Bundle was only living in Nigeria and Ghana with less than 100,000 active users.

Bundle numbers may not look that impressive from a global point of view. However, when compared to its peers in Africa, no Domestic encryption platform service Just Africa has reached 1 million customers.

Bademosi believes that this is because cryptocurrency trading alone cannot lead to mass reliance on the blockchain and native crypto applications. To create products that can scale to millions or several million users in the next two years, companies must create applications that are more accessible to ordinary people, the essentials of Web 3.

“The first iteration of cryptocurrency products was product trading. The second iteration was more like decentralized financing and non-custodial trading of financing activities,” Bademosi said.

“The current state of cryptocurrencies, and now it’s more like the apps that people use and love every day, whether it’s consumer apps, financial apps, entertainment, and games, but now these apps have the potential to reach millions of users across frontier markets. And that’s kind of what we’re trying to Do it with Nestcoin.”

To understand how to use Nestcoin Works Here is a look at the Digital Currency Group (DCG). The Connecticut-based venture capital and holding company has more than 60 crypto and blockchain subsidiaries and investments in 30 countries, including LUNO, CoinDesk, and Bitso.

However, the difference is that while DCG is focusing on Western markets and building products for gay and institutional customers with custodial features, Nestcoin is mainly buildinginvests and operates Web3 and non-custodial products that are more accessible to ordinary people in frontier markets.

Nestcoin’s products include decentralized finance (DeFi), media, digital arts, and games.

The company, which Bademosi describes as a collaborative venture, launched its media arm Breach last year to create small-scale, informative crypto content for the average African. erected too Metaverse Magna (MVM)A gaming guild that introduces users to the world of gaming to win crypto-currency-powered games like Axie Infinity.

The NFT-based online video game developed by Sky Mavis has become a sensation since 2020 but is expensive to play. What the MVM did was buy Axies and lend to players in her guild while using a revenue sharing agreement with them. Ultimately, these users can earn up to $1,000 per month, the company said.

Bademosi said MVM has had more than 2,000 apps since its launch. HoweverCurrently, there are only 400 players living on the platform, a number looking to increase to 1,000 before the next quarter (for example, some of the largest guilds have player size of 2,000 to 3,000).

Nestcoin also hopes to offer DeFi projects by the second quarter of this year. moreover To that end, the company will explore ways in which content creators on the platform can earn cryptocurrency while teaching its 6,000 subscribers with structured learning paths.

The company’s pre-seed tour, the second largest in Africa and the largest in Nigeria and sub-Saharan Africa at the moment, will provide the firepower to build these and many other products in the pipeline.

Part of the money will also go to investing in 3 web projects. The company has done this in a few projects but only publicly The deal was revealed in Lazerpay, which allows companies to accept payments in cryptocurrency. I recently supported AltSchool Africa, a project for entry-level tech talents to introduce Africans to software engineering and 3 web courses like blockchain.

Nestcoin itself has participated in other projects such as collaboration With cryptocurrency exchange Bitsika To launch a social icon for African music artist Davido. Bademosi said that Nestcoin may raise an independent fund to invest and Participate In such deals and projects in the future.

However, there is a growing concern that Web3 is getting into similar predicaments that enthusiasts blame on Web2 projects.. Apart from centralization, many believe that Web 3 projects such as NFTs have become too expensive Participate In and enriches only a select few.

Bademosi does not agree. According to him, cryptocurrency trading, the web’s 3 most accessible form, accused From the same issues years ago but it became cheaper to use.

He referenced his time at Microtraction, an early-stage investment firm he founded in 2017 to support African start-ups. there is Invested in YC-backed Buycoins at a time when DCG-backed LUNO was the only company that made it easier for Africans to buy and sell bitcoin. But today, there is an entire ecosystem of businesses that makes it easier and cheaper to buy other cryptocurrencies, and not so Just bitcoin said.

“A lot of these early cryptocurrency companies didn’t have a lot of users. So, in the same way that you don’t think of cryptocurrency trading as a luxury activity, this Just Because of the development in the past three or four years, the CEO continued.

He also noted the success of Axie Infinity in the Philippines, where it is now being done by thousands of gamers who haven’t been able to make money from Web 2.0 games.. He said if Nestcoin can replicate something similar In Africa, a market of more than 250 million mobile players, wealth will increase is distributed Among millions of people, not a select few.

“There is this saying, talent is equally Distributed, but the opportunity is not. Web3 and crypto is that equivalent between talent distribution and opportunity distribution. He expects to achieve three bold goals with his new company: gain 1 million users transacting per month, reach up to 50 million monthly active users, and have 1 million of those users keep $10,000 in their wallets.

The company, with team members in nine countries, has commissioned Web3 strategist and traditional investors to support its mission. They include Alameda Research, Distributed Global, Alter Global, Serena Ventures, A&T Capital, MSA Capital, 4DX Ventures, Raba Capital, Goat.vc, Old Fashion Research, CMT Digital, Electric Capital, Social Capital, Social Capital, CoinFund, gumi Cryptos Capital and DeFi are an alliance. Local investors in the round include Ventures Platform, Future Africa and Voltron Capital.

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Noah Roy

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