Representatives of the now-bankrupt FTX Africa are facing dangerous threats, with many reporting serious risks to their safety. Initially tasked with growing FTX Africa's user base, these representatives were promised a portion of the user trading fees and monthly incentives based on their performance. At its peak, FTX Africa's official Telegram group boasted over 10,000 members.
Pius Okedinachi, previously responsible for educational initiatives at FTX Africa, shared his story with CoinDesk, highlighting the initial appeal of the platform compared to other options.
'We encouraged many of our friends and family to join the FTX platform,' he recalled.
However, following FTX's financial downfall, those recruited by the representatives have turned against them. Facing blame from their loved ones, these representatives have lost the trust of those closest to them.
This backlash is linked to a broader FTX Africa initiative led by Sam Bankman-Fried, which aimed to expand the company's presence throughout Africa, primarily targeting college students. With FTX's collapse, the initiative has suffered a major setback, leaving brand ambassadors in a precarious position, often fearing for their safety."
In contrast to competitors like Binance and KuCoin, FTX Africa's affiliate program, which spanned approximately two years, primarily targeted tech-savvy, younger demographics.
Insiders familiar with FTX Uganda's student engagement initiative noted that while many students were enticed by the promise of potential profits, they often lacked a full understanding of the accompanying risk of substantial financial losses. As reported by CoinDesk, one specific brand representative has withdrawn from public visibility, citing concerns over potential backlash from the community for encouraging investments in the now-failed FTX platform. Several other brand representatives have gone off the radar for months, as the community clamors for accountability. Moreover, some ambassadors have faced physical threats, intensifying an already dire situation. When a project or organization within the industry engages in actions detrimental to its peers, the financial ramifications take center stage. Beyond the financial aspects, the well-being and social standing of stakeholders often suffer, and the FTX Africa case serves as a somber reminder of this reality.