African web3 startup Nestcoin has successfully raised $1.9 million in a strategic funding round to further develop its Onboard product. The funding round was led by Hashed Emergent, a fund that supports builders from emerging markets. Several existing investors, including Alter Global, Magic Fund, CMT Digital, and 4DX Ventures, also participated, as did new investors Adaverse and Base Ecosystem Fund.
Key Takeaway
Nestcoin has secured
.9 million in funding, led by Hashed Emergent and joined by Adaverse and Base Ecosystem Fund. The company has shifted its focus to developing its Onboard product, which aims to provide equitable access to financial opportunities for individuals in frontier markets.
A Challenging Year for Nestcoin
Last year, Nestcoin faced significant setbacks following the collapse of the cryptocurrency exchange FTX, resulting in substantial losses of assets. As a result, the company had to downsize its team. Nestcoin initially aimed to create, invest in, and operate various web3 products in sectors such as decentralized finance (DeFi), media, digital art, and gaming in frontier markets.
However, the unexpected events forced Nestcoin to reevaluate its objectives. The company now positions itself as a development firm focused on its Onboard product. The gaming DAO Metaverse Magma (MVM), previously part of Nestcoin, now operates independently.
Revolutionizing Modern Finance
Nestcoin intends to use the newly acquired funding to strengthen its financial position and achieve its mission of enabling individuals in frontier markets to access economic possibilities through Onboard. This modern finance project aims to address the challenges faced by Africans who lack access to financial services or have limited trust in traditional financial systems.
Onboard is a noncustodial wallet that competes with global services like MetaMask and Trust Wallet, as well as domestic services like Ejara. Unlike centralized exchanges like Binance and Coinbase, Onboard enables users to securely store and protect cryptocurrencies and digital assets without relying on third-party custodians. The platform plans to introduce innovative features such as rewards, credit options, and fast payment capabilities through blockchain technology.
One of the distinguishing features of Onboard is its use of emails instead of seed phrases for wallet access. Seed phrases, if lost or misplaced, can result in the permanent loss of crypto assets. Onboard ensures secure key management and multifactor authentication to safeguard users’ assets.
In addition to its wallet services, Onboard offers a P2P marketplace for merchants to profit from trading digital assets. The platform is also developing a virtual card product that will allow users to spend stablecoins across more than 160 countries.
Building on Coinbase’s Base Ecosystem
Nestcoin’s partnership with Base Ecosystem Fund, supported by leading crypto platform Coinbase, played a crucial role in securing the funding. Base is a low-cost, developer-friendly Ethereum L2 designed to onboard over 1 billion users into the crypto economy. Onboard integrates into the Base ecosystem of decentralized apps (dApps) and aims to expand its global reach beyond its initial user base in Nigeria.
The investment from Base Ecosystem Fund reinforces Nestcoin’s commitment to bringing equitable financial opportunities to individuals worldwide. Nestcoin’s CEO, Yele Bademosi, expressed excitement about collaborating with Base and their shared vision of empowering people across Africa and beyond with increased access, freedom, and opportunity.
Despite the challenging fundraising environment for blockchain projects, Nestcoin’s successful funding round demonstrates the continued interest and support for innovative solutions in the crypto space. With the investment, Nestcoin is well-positioned to advance the development of its Onboard product and help individuals in frontier markets thrive in the modern finance landscape.
