Brand ambassadors for FTX Africa are now facing life-threatening situations and public backlash following the platform’s financial collapse.Brand representatives for the bankrupt FTX Africa are encountering life-endangering challenges,...
Brand ambassadors for FTX Africa are now facing life-threatening situations and public backlash following the platform’s financial collapse.
Brand representatives for the bankrupt FTX Africa are encountering life-endangering challenges, with several reporting serious threats against them. The representatives were initially tasked with increasing the user base for FTX Africa, receiving a share of the user trading fees along with performance-based monthly incentives. FTX Africa’s official Telegram group once boasted a membership exceeding 10,000.
Pius Okedinachi, who formerly oversaw educational efforts at FTX Africa, recounted his experience to CoinDesk, noting that the platform appeared superior to other options at the time. “We encouraged many of our close ones to join the FTX platform,” he said.
However, after FTX’s financial unraveling, those who were recruited have turned against the ambassadors. They are constantly being blamed by their friends and families, losing all the trust of their close ones.
The backlash stems from a larger FTX Africa initiative led by Sam Bankman-Fried, which aimed to expand the company’s presence across Africa. Primarily targeting college students, the initiative has suffered a severe blow since the collapse of FTX, causing brand ambassadors to be held accountable, sometimes to the point of fearing for their lives.
Consequences for FTX affiliates
Unlike competitors Binance and KuCoin, FTX Africa’s engagement program, which ran for about two years, focused on recruiting in technology-savvy, younger demographics. Insiders from FTX Uganda’s student engagement effort remarked that while many students were lured by the potential profits, they lacked the full understanding that substantial financial losses were also a possibility.
CoinDesk reported that one particular brand representative had retreated from public view, expressing concerns over retribution from the community for encouraging them to invest in the failed FTX platform. Several brand representatives have been off the grid for months as the community demands accountability. Physical threats have also been directed at ambassadors, fueling an already dire situation.
When a project or organization commits crimes against the industry itself, the financial impact becomes of utmost importance. Beyond the numbers, the livelihood and social identity of the stakeholders are often unfortunate victims, and the case of FTX Africa is a grim reminder of that fact.