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Nestcoin To Lay-off Workers After Losing Assets to FTX crash

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Nestcoin, a Nigerian cryptocurrency firm, may have lost all of its assets in cash and stablecoins due to the collapse of FTX, the world’s second-largest cryptocurrency exchange.

Nestcoin has stated that as a result of this development, it would be forced to lay off some of its employees in order to re-strategize the firm.

The business, however, emphasized that the event has had no financial impact on its consumers, and that the products Nestcoin has published to date are Defi protocols and non-custodial in nature. As a result, it has never retained any of its customers’ funds.

Nestcoin Co-Founder Yele Bademosi described the scenario as problematic for the company and the whole crypto sector in a note to investors.

This is what happened: The corporation stated that it had kept a major percentage of its stablecoin investment on the FTX Exchange and that its hopes of reclaiming them are now in jeopardy.

Bademosi provided an update on the impact of FTX’s collapse on Nestcoin

Last year, Nestcoin raised capital from a range of investors, including Alameda Research. For context, Alameda’s equity is less than 1%. We used the closely-associated exchange, FTX, as a custodian to store a significant proportion of the stablecoin investment we raised – 1.e. Our day-to-day operational budget.” 

“However, last week’s events have had an impact on us, as we held our assets (cash and stablecoins) at FTX to manage our operational expenses. We were not undertaking any trading, but simply custodied our assets on the FTX exchange. 

“While there are uncertainties including the outcome of our assets held at FTX, we as a company have to adjust our plans, rethink our strategy and take steps to better position ourselves for the future. Unfortunately, this means saying goodbye to some of our very talented Nesters,” he added

While the number of employees who will be let off has not been published, Bademosi stated that the immediate goal for Nestcoin’s leadership team is to execute the difficult task of laying off employees in a sympathetic manner. He stated: “While this is a challenging time for us and the industry as a whole, we see this as a wake-up call to focus on building a more decentralized crypto future where no one organization or person can amass enough power to influence a nascent industry that has the potential to do good. 

“In the past few days, I’ve strengthened my resolve and remain committed to “doing crypto” in line with its true spirit and founding ethos. At Nestcoin we have a renewed sense of purpose – we realize that for crypto to truly go mainstream, we must accelerate the transition to self-custody by building compelling trustless crypto products. To succeed, we will remain relentless, resourceful, and flexible as we navigate these hard times.” 

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US Bans Sale of Chinese Tech Amid Security Fears

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The United States has prohibited the sale and import of new communications equipment from five Chinese companies, including Huawei and ZTE, due to national security concerns.

Hikvision, Dahua, and Hytera are also included as manufacturers of video surveillance equipment and two-way radio systems.

It is the first time that US regulators have taken such a step for security reasons.

Hikvision claims that their goods pose no security risk to the United States.

It stated that the decision “would do nothing to protect US national security, but will significantly increase the risk and cost for US small enterprises, local governments, school districts, and individual consumers to safeguard themselves, their homes, businesses, and property.”

Previously, Huawei and others denied providing data to the Chinese government.

The US Federal Communications Commission (FCC) announced on Friday that its members had voted unanimously to adopt the new rules.

“The FCC is committed to protecting our national security by ensuring that untrustworthy communications equipment is not authorised for use within our borders,” the commission’s chairwoman Jessica Rosenworcel said in a statement.

“These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications,” she added.

Because the restriction is not retroactive, the companies mentioned may continue to sell products that were previously approved for sale in the United States.

However, the FCC stated that it is collecting opinion on future modifications to the rules involving equipment previously authorized to be imported or sold, implying that existing authorizations may be removed in the future.

The US restrictions are the latest imposed on Chinese IT businesses in response to surveillance fears, which US officials have grown increasingly concerned about in recent years.

Actions to restrict Chinese telecom corporations’ access to the US market initially took root during Barack Obama’s presidency. They were then accelerated during Donald Trump’s presidency and have continued under current US President Joe Biden’s rule.

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Mercedes to introduce acceleration subscription fee

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Mercedes-Benz will launch an online subscription service in the United States to help its electric vehicles accelerate faster.

The company would allow certain of its vehicles to sprint from 0-60mph in less than a second for an annual payment of $1,200 (£991) excluding tax.

It comes after competitor automaker BMW introduced a subscription service for heated seats earlier this year.

Mercedes has indicated that it does not intend to introduce “Acceleration Increase” in the UK at this time.

It will be offered in the United States on the Mercedes-EQ EQE 350 and EQS 450, as well as their SUV cousins.

According to the Mercedes US online store, the technology “electronically enhances” the output and torque of the car’s motor.

BMW received outrage in July after announcing that consumers may pay £25 per month to unlock heated seats and steering wheels in their vehicles.

Toyota also stated in December 2021 that it would charge select drivers $8 per month to remotely start their automobiles using a key fob.

Tesla introduced “Acceleration Boost” in 2019, which allows Model 3 vehicles to accelerate from 0-60mph in half a second for a one-time fee of $2,000.

The US Mercedes storefront lists the Acceleration Increase subscription as “coming soon,” with no specific release date.

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Musk says Twitter will offer ‘amnesty’ to suspended accounts

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Elon Musk has stated that Twitter will grant “universal amnesty” to certain suspended accounts beginning next week.

This comes after he launched a poll on Twitter on Wednesday, asking people if accounts that had “not breached the law or engaged in flagrant spam” should be allowed back on the platform.

Mr Musk has already restored several accounts, including that of former US President Donald Trump.

Last month, the world’s richest man paid $44 billion (£36.3 billion) for Twitter.

Mr Musk’s poll received over 3.1 million responses, with 72.4% voting “Yes.”

“The populace has spoken. The amnesty period begins next week “Mr Musk, who has 118.7 million followers on Twitter, later tweeted.

He also used the Latin phrase “the voice of the people is the voice of God.”

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