Vibra Crypto App Suspended in Ghana, Kenya, and Nigeria
The Africa-focused crypto trading app Vibra has reportedly stopped working in Ghana, Kenya, and Nigeria. Vincent Li, co-founder of African Blockchain Labs, the organization behind the app, claimed that the suspension only affected users in Nigeria and would be temporary.
Employees Forced to Resign or Face Termination
However, a report by Techcabal on October 18th quoted current and former employees who confirmed that the app had been stopped in all African markets. These employees revealed that they were asked to resign or be fired. One former employee suggested that Vibra’s closure may be due to a lack of revenue generation and an inability to turn user education into profits.
Impact of Crypto Winter
The co-founder’s claims are contradicted by messages on Vibra’s telegram channel which suggest that users from other countries are also affected. The suspected demise of Vibra is attributed to the “crypto winter,” a period where crypto and fintech startups have struggled and scaled back operations due to market conditions. However, corporate governance failures and acts of fraud by founders have also contributed to the downfall of some startups.
Hot Take: Vibra’s Troubles Highlight Challenges Faced by African Crypto Startups
The suspension of Vibra in multiple African markets sheds light on the challenges faced by crypto startups in Africa. While the co-founder initially claimed that only Nigerian users were affected, reports from employees indicate otherwise. This incident highlights not only the impact of the crypto winter but also issues related to revenue generation and corporate governance failures. As the African crypto ecosystem continues to evolve, startups will need to address these challenges and find sustainable business models to thrive in this rapidly changing industry.
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