The recent sale of Nigerian crypto startup Fluidcoins to UAE-based Blockfinex has left existing investors grappling with the reality of a fire sale that saw them exit with no returns. Fluidcoins CEO Lanre Adenowo revealed in an investor update that the startup faced a severe cash shortfall, with a $30,000 deficit on its Flip product, forcing a decision between shutdown or a fire sale. Adenowo chose the latter, citing that shutting down would not satisfy financial obligations.
While reports initially hinted that the sale may have bypassed investor approval, some investors confirmed they were aware of Fluidcoins’ financial challenges and potential sale. Angel investor Joe Kinvi stated that all investors were informed of the company’s difficulties after the market turned against Fluidcoins. However, an anonymous investor argued that the final decision felt unilateral, with Adenowo acting “like it’s a sole-proprietorship,” expressing frustration over limited investor involvement.
Fluidcoins, which raised $150,000 over 18 months from syndicates, angel investors, and crowdfunding, now leaves its investors with no returns. A cap table shows two syndicates invested $50,000, ten angel investors contributed $70,000, and $30,000 came from a crowdfunding organization.
The Blockfinex acquisition was reportedly not the only offer Fluidcoins received. Sources indicate that a Nigerian open banking startup and cross-border remittance company Payday, both with prior ties to Fluidcoins, had made acquihire proposals involving potential CTO roles and equity for Adenowo. However, these deals ultimately fell through, leading to the finalized Blockfinex deal.
Despite requests for further comment, Adenowo and Payday CEO Favour Ori declined to elaborate on these offers or the sale’s specifics.
