Uche decided to shut down his crypto company… in the middle of a bull run.
Yes, you read that right. A bull run. While everyone else was counting profits and popping champagne, Uche was counting his losses and quietly walking away.
Let me rewind.
Meet Uche, a pioneer in Nigeria’s crypto scene. If you were on Facebook in 2013, you probably saw him passionately preaching the gospel of Bitcoin while we all rolled our eyes and moved on to the next status update or popping gist on the TL. Turns out, Uche was a visionary.
He bought Bitcoin in 2013, stuck with it through the winters, and when the world finally caught on, he was that guy. He launched his crypto startup three years ago, and it exploded. His name became synonymous with crypto. People trusted him, not just because he was early, but because he was real.
So imagine my shock when, over a bottle of red wine and live band music at our usual Friday night hangout, Uche dropped the bomb:
“I’m shutting it down.”
I nearly choked on my drink.
About a year ago, I went through my own struggles running a crypto company, so I understood how tough it could be. I’d also heard many other crypto founders share similar challenges. So when I saw that he was struggling, it didn’t shock me. What did surprise me was that Uche, the golden boy of crypto, didn’t have all the answers. With his knowledge and passion, I expected more. That made me curious. I had to dig deeper.
As the night went on, the truth came out. His business wasn’t thriving. It was bleeding.
“I’m tired,” he confessed, eyes weary. “We’re losing money, losing customers, and honestly… I’m losing my mind.”
Turns out, one of his top traders, Osas, had stopped using the platform. “Unable to complete the transaction.” error messages. Osas wasn’t the only one. The floodgates had opened, and people were leaving fast.
“I didn’t expect the business to grow this quickly,” Uche muttered, his voice cracking.
“I thought I had everything in place. A 24/7 support team, 20+ staff, good rates, an 8,000-member Telegram community. But I was wrong.
I’m drowning because… I don’t have liquidity.”
Let’s pause here for a second.
What Exactly is Liquidity?
Let me paint a picture.
Imagine you run a Bureau De Change (BDC) at the airport. People rush in last-minute to convert naira to euros before their flights. Now imagine they leave smiling, you always have the cash, the rates are fair, and the service is swift.
That’s good liquidity.
Now imagine the opposite. People coming in, panicking as their flights are minutes away. But you don’t have the currency they need. They leave angry. Frustrated. Swearing never to return.
That’s poor liquidity.
And that was Uche’s reality.
His platform didn’t have enough supply to match user demand. So traders kept hitting dead ends. And when you disappoint crypto traders, they don’t just leave, they don’t come back.
After trying every solution he could think of, Uche was ready to give up.
But then I asked:
“What if I showed you a way to make sure your crypto startup never runs dry?”
He scoffed.
“Abeg, stop playing.”
But I wasn’t. Because here’s the truth: Liquidity is the lifeblood of any crypto business.
Without it, your users face slippage, failed trades, and trust issues. And when trust is gone, your business follows.
Why Liquidity Matters (And Why You Can’t Ignore It)
Liquidity determines how easily users can buy or sell assets at stable prices. The more liquidity you have:
- ✅ Prices remain stable so no crazy jumps between trades.
- ✅ Slippage is reduced because users get what they expect.
- ✅ Trading volume increases because satisfied users bring referrals.
The painful part? Many exchanges still rely on either manually funded wallets or inconsistent liquidity providers. That’s a ticking time bomb!
So let me save you from Uche’s mistake.
How to Make Sure Your Crypto Startup Never Runs Dry
Uche didn’t shut down his business after all because I handed him the playbook.
And now, I’m handing it to you too. Here are 3 battle-tested ways to solve the liquidity problem once and for all:
1. Join a Liquidity Aggregation Network
Think of this like joining a high-stakes “ajo” (thrift savings group) but for digital assets. Liquidity aggregators pool together multiple buyers and sellers, giving you access to deep liquidity at all times.
Platforms like Quidax offer this via their Crypto API. It connects you directly to top-tier liquidity pools, so your customers can complete trades quickly, even during peak demand.
Your users get instant execution. You get peace of mind.
2. Partner with a Market-Making Firm
Market makers are like your loyal in-house traders, constantly placing buy and sell orders to keep your business active. With them, your order books stay full and attractive.
But you don’t have to do it alone.
Partner with a market-making firm or plug into a solution like Quidax’s API, which handles the heavy lifting for you. Think of it as having an elite trading squad working 24/7 behind the scenes.
3. Use Cross-Exchange Liquidity via API Integrations
Don’t be an island. Connect your platform to multiple exchanges. With the right API setup, you can tap into external liquidity pools and never leave your users stranded again.
It’s like having multiple backup generators during a blackout, your trades will always have fuel.
The Final Word
Crypto is hard. Running an exchange is even harder.
But liquidity? That should never be the reason you close shop.
Uche almost gave up, not because he didn’t believe in crypto anymore but because he didn’t have the engine that would keep his business running.
Now he has.
And you can too.
If you’re building a crypto exchange and want to get ahead of a liquidity crisis while focusing on other aspects of your business like the customer experience or marketing, then you need to solve your liquidity problem before it starts.
Ready to keep your crypto startup running 24/7?
[Talk to the Quidax API team today]
