Paxful Shutdown: Nigeria Hardest Hit by Crypto Exchange’s Closure
• Paxful, a peer-to-peer cryptocurrency marketplace, recently announced it would be shutting down its operations due to staff departures and the regulatory environment.
• This shutdown has had a significant impact on the Nigerian crypto community, where Paxful pioneered P2P crypto use.
• Many users expressed worry about getting their funds back as well as the effects this shutdown would have on other crypto enthusiasts in Nigeria.
What is Paxful?
Paxful is a peer-to-peer (P2P) cryptocurrency marketplace that allowed users to buy and sell digital assets with ease. It was especially popular in Nigeria, where it pioneered the use of P2P technology in the country and helped expand the crypto industry.
Why did Paxful Shut Down?
On April 4th, Paxful declared that it would halt its operations due to “key staff departures” and the regulatory environment. This news left its worldwide community heartbroken and looking for alternatives.
The Impact of Paxful’s Shutdown on Nigeria
The Nigerian crypto community has been significantly impacted by this decision as many relied upon Paxful for their digital asset needs. Freelancers used it to exchange dollars they received from international employers for Nigerian naira or Bitcoin, while OTC vendors used its escrow service to purchase gift cards from individuals who wanted to sell them but weren’t literate enough to use the platform themselves.
Emmanuel Susegh’s Perspective
One user named Emmanuel Susegh mentioned that he made his first $100,000 thanks to Paxful and that this shutdown feels like “the death of a loved one”. He used it since 2015 to trade gift cards from Amazon and Apple for Bitcoin.
Concerns About Funds
Some members of the community are worried about users getting their funds back when using such marketplaces going forward. However, CEO Ray Youssef assured those affected by stating: “We will continue working closely with our payment partners until all withdrawals are processed”.