After the demise of Paxful, a famous peer-to-peer Bitcoin marketplace, its global user base was left scrambling to find a suitable replacement. The cryptocurrency community in Nigeria, where the platform is very influential, is significantly impacted by this. Because of this, it has had a major effect.
On April 4, Paxful announced it was shutting down due to “important personnel departures” and the regulatory climate, as stated in a blog post by the company’s founder and CEO, Ray Youssef. Several people in Nigeria who use the platform’s services for their financial transactions are worried after reading this.
Nigeria ranked ninth in terms of cryptocurrency acceptability and usage in Chainalysis’s “The 2020 Geography of Cryptocurrency Study” out of 154 countries assessed for the research. This shows how crucial the Bitcoin industry is to the country’s economy. More Nigerians now have access to cryptocurrencies thanks in part to Paxful’s success, which can be traced back to the company’s pioneering use of peer-to-peer technology in Nigeria.
Obinna Uzoije, a data analyst and Paxful user from Nigeria, recently shared his experience of using the marketplace as a young professional. His company paid him in dollars, which he converted to naira through the exchange platform Paxful. Through the online payment platform Skrill, money was sent to freelancers operating in Nigeria on behalf of global firms. It was made much easier for freelancers to swap them in for Bitcoin or actual currency because certain Paxful users accepted the money. When Paxful abruptly shut down, many Nigerian crypto enthusiasts were left wondering what the future holds for cryptocurrency marketplaces.
A new generation of over-the-counter (OTC) sellers, according to OTC vendor Akeem Abdullahi, has emerged thanks to Paxful’s escrow service. Those with good intentions may offer gift cards to merchants that lack the technical proficiency necessary to use the site themselves. As a direct result of this change, many Nigerians developed a better sense of financial independence and an entrepreneurial spirit.
Members of the Nigerian cryptocurrency community took to Twitter to express their concern that stolen funds may be recovered. Youssef has tweeted to users that the Paxful team is trying to clear outgoing payments, reassuring them that their money is safe. Youssef was the one who disclosed this data.
In conclusion, the cryptocurrency community in Nigeria has been severely harmed by Paxful’s closure. This is especially true given the pivotal role that the platform plays in the growth of the industry. Many consumers in Nigeria worry about the security of their Bitcoin holdings as they search for alternatives to Paxful in light of the market’s inability to anticipate its future.
