FTX in Africa: between aggressive marketing and invisible promises

FTX in Africa: between aggressive marketing and invisible promises

FTX promises – When the twists and turns of the FTX affair cheerfully feed the legal chronicles of the crypto and financial press, we discover that the platform has sought to attract new users until the last moment. While all eyes have turned to the United States and Europe after the bankruptcy, it appears that some countries inAfrica were targeted by a particularly aggressive marketing from the teams of Sam Bankman-Fried. As close as possible to local issues, exchange ambassadors were able to convince those around them with a lot of gifts and benefits. They now find themselves in a very complicated situation.

Aggressive marketing to attract new users in West Africa

On November 3, ten days before the official bankruptcy of his company, Sam Bankman-Fried enthusiastically announced that FTX now accepted the franc CFA. Within the eight countries of the West African Economic and Monetary Union (WAEMU), it would now be possible to buy cryptocurrencies on the Bahamas platform. The inhabitants of Benin, Burkina Faso, Togo, Senegal, Mali, Côte d’Ivoire, Niger and Guinea-Bissau also found themselves embarked on FTX’s one-way adventure.

But the worst is clearly to be found on the side of the Nigeria. It is in this gigantic country with more than 2 million inhabitants that the marketing of the bankrupt platform has been most effective. Witnesses recounted lavish parties held in Lagos that were intended to recruit new ambassadors. These were then responsible for convince again clients with 5 dollar bonuses and gifts for each new registration.

FTX dragged new users into its downfall until the last moment

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Local FTX Ambassadors at work in Nigeria

Pius OkedinachiHead of Education for Africa at FTX and ambassador himself, explains his methodology, not without bitterness:

“My main job was to promote FTX in Nigeria and other African countries through online information sessions and events like conferences. We knew how to play the game. We knew how to involve people. »

We now know that these recruiters house had quantified objectives hundreds of thousands of dollars each month. Fortunate Atueyi, 23, a chemistry student at the University of Nigeria, Nsukka, became an ambassador for the FTX campus in March 2022. He says the company took care of the logistics while he brought students back. For 500 people present, he touched $200 and the promise of more in the future.

Protect yourself from the devaluation of your own currency and have a return of 8% with dollars?  Who could resist these arguments in Nigeria and other African countries where FTX has been able to convince many people to invest in them.  Unfortunately, they lost everything when the platform went bankrupt.
Many Nigerians have joined FTX in an attempt to save their savings from the fall of the local currency

Arguments that hit home with the population

To fully understand FTX’s strategy, just read the title of a webinar announced on the company’s Telegram group. The 11,000 members were invited to reflect on how Hedge inflation with FTX Earn ». With a yield of 8% on the stablecoins in dollars, FTX offered to solve two problems at the same time.

First, convert the local currency into dollars for avoid suffering devaluations Nigerian naira, South African rand or Ghanaian cedi. But above all take advantage of the 8% return and hold out the promise of a better future to often less fortunate students. Finally, the worst part of all this is perhaps the shame and the regrets of having embarked on the adventure of the members of his family and some of his friends.

muhammad sabiu27, says he admired Sam Bankman-Fried, believed his statements altruists and engaged. He fell from a height during the bankruptcy of FTX and in addition to its personal losseshe must now assume eyes on him and manage the disappointments of his community. Finally, from New York to Lomé and from Abuja to Paris, cheated users of the exchange all have the same bitterness to have believed in the beautiful promises of the CEO in shorts. And recent revelations won’t lessen that feeling.

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