Vibra, an Africa-focused crypto trading app, has ceased operations in Ghana, Kenya, and Nigeria, raising concerns about the fate of its users and the reasons behind its abrupt closure. While Vincent Li, the co-founder of African Blockchain Labs, which developed Vibra, claimed that the suspension was temporary and restricted to Nigerian users, recent reports paint a different picture.
According to an Oct. 18 Techcabal report, current and former employees, who preferred to remain anonymous, confirmed the app’s shutdown across all African markets. Employees revealed that they were given the ultimatum to resign or face termination. Financial struggles also plagued Vibra, with one ex-employee suggesting that the company failed to generate sufficient revenue.
Li’s assertion that only Nigerian users were affected seemed contradicted by messages on Vibra’s Telegram channel, indicating a broader impact. The demise of Vibra, reminiscent of other ambitious African crypto startups facing challenges in 2023, has been linked to the industry-wide phenomenon known as the “crypto winter.” During this period, startups in the crypto and fintech sectors, which previously raised substantial funds, have either downscaled or halted operations due to market pressures.
However, the collapse of startups like Vibra and Ghanaian firm Dash has been attributed not only to market fluctuations but also to corporate governance failures and founder-led fraudulent activities. Dash, despite amassing over $86 million in capital over five years, serves as a stark reminder that financial backing alone cannot guarantee success in the volatile world of crypto startups.