{"id":17755,"date":"2023-02-17T10:41:03","date_gmt":"2023-02-17T10:41:03","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ftx-promised-high-earnings-to-african-students-that-successfully-recruited-fellow-learners-africa-bitcoin-news\/"},"modified":"2023-02-17T10:41:03","modified_gmt":"2023-02-17T10:41:03","slug":"ftx-promised-high-earnings-to-african-students-that-successfully-recruited-fellow-learners-africa-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ftx-promised-high-earnings-to-african-students-that-successfully-recruited-fellow-learners-africa-bitcoin-news\/","title":{"rendered":"FTX Promised High Earnings to African Students That Successfully Recruited Fellow Learners \u2013 Africa Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The collapsed crypto exchange FTX reportedly used the lure of high earnings to convince African university students to become its ambassadors. In addition to encouraging new FTX investors to use the platform, student ambassadors were also required to teach them about crypto and the blockchain. Some of the students insisted they will not quit crypto despite losing funds following FTX\u2019s collapse.<\/strong><\/p>\n

Recruited Users Told of Benefits of Using FTX<\/h2>\n

The collapsed crypto exchange FTX reportedly used the promise of significant rewards to encourage African students to recruit new investors to its platform, a report has said. The report added that in certain cases, the students were reportedly told to ensure the recruited investors deposited funds or traded on the platform. <\/span><\/p>\n

Besides encouraging the new investors to use the platform, the students were also required to educate them about crypto and blockchain technology. The students had to emphasize to fellow students the benefits of using FTX. According to a Business Insider report<\/a>, successful students were told they could earn commissions as high as 40%.<\/span><\/p>\n

However, as per the report<\/a> by CNBC, many of the students who acted as FTX\u2019s brand ambassadors in Nigeria before it collapsed were not aware of the crypto exchange\u2019s precarious financial position. Consequently, when the crypto exchange collapsed in the last quarter of 2022, the students were still actively recruiting, and just like other FTX users, they too lost money. <\/span><\/p>\n

As expected, the crypto exchange\u2019s collapse and the impact it has had on the broader crypto industry have amplified calls for tougher regulation of crypto entities. In Africa, regulators such as the Rwandan central bank have used FTX\u2019s collapse to highlight<\/a> the dangers of crypto trading. <\/span><\/p>\n

\u2018Too Big to Fail\u2019<\/h2>\n

Yet, despite the threat of stricter regulation as well as the public\u2019s now dimmed view of the crypto industry, some of the students quoted in the report said they are undeterred. One of the students, Imran Yahya, FTX\u2019s ambassador at Bayero University in Nigeria, said the crypto exchange\u2019s collapse only proved that \u201cno company is too big to fail.\u201d However, instead of quitting crypto, Yahya reportedly said he planned to be more careful this time.<\/span><\/p>\n

Fortunate Atueyi, FTX\u2019s ambassador at the University of Nigeria, said he too will be more careful and not overly trusting in the future. <\/span><\/p>\n

\u201cI kind of trusted them. I was like, I was a part of people saying FTX is too big to fail. I don\u2019t think it is, like, wise to leave your money there, and they have full control over your money. So are just like any bank,\u201d Atueyi said.<\/span><\/p>\n

Another student, Gabriel Trompiz, argued that while centralized exchanges like FTX have proved to be helpful in driving the crypto adoption agenda, relying on them \u201cis like contradicting yourself.\u201d Therefore, to ensure that he does not lose out again in the future, Trompiz said he will prioritize investing in decentralized finance (defi) platforms.<\/span><\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/em><\/strong><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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