Nigerians increasing their use of BTC is no longer news, but what seems astonishing is the volume that they transact with BTCs weekly, compared to other African countries.
Data shows that the use of Bitcoin for peer to peer lending in Nigeria is on an astronomical run.
Recent statistics obtained from usefultulips, a BTC analytic data provider, stated that Nigeria leads Africa peer to peer lending in 2020, posting weekly P2P volumes of between $8million, followed by South Africa and Kenya posting about $2 million weekly.
Quick Facts: In BTC’s case, peer to peer is the exchange of BTC between parties (such as individuals) without the involvement of a central authority. This means that peer to peer use of BTC takes a decentralized approach in the exchange of Bitcoins between individuals and groups.
It shows that BTC’s long-running narrative as the “digital gold” for hedging against global economic turmoil is gaining the trust of Nigerians for payments and transfers.
The financial market turmoil triggered by COVID-19 has definitely changed the way Nigerians view the whole financial system, as data also obtained from Google trend shows Nigeria leading the pack around the world in Bitcoin searches.
This is a testament to the fact that Nigerians truly love their Bitcoins.
It’s important to note that Nigeria’s Securities and Exchange Commission is aware of the high precedence of crypto use in Africa’s biggest economy, and has up come with rules recording to the fast-changing financial sector
Chimezie Chuta, Founder, Blockchain Nigeria User Group, spoke with excitement on the long-overdue legal framework by the Nigerian Securities and Exchange Commission regulating digital assets and blockchain investments.
“SEC Nigeria has consistently shown that it has a clear understanding of her role in creating a conducive environment for the growth and development of Virtual Financial Assets, and Cryptocurrencies in general.
“This recent publication will act as a catalyst for mass adoption. It will also create much needed institutional investor confidence for the Nigeria Capital Market.”
Binance investigates Squid Game token
Binance, one of the world’s largest cryptocurrency exchange by trading volume, according to a CoinDesk report, is investigating the SQUID token crash and considers it a scam. CoinDesk quoted a spokesperson for the company.
The spokesperson explained that Binance is exploring options to help those harmed, including “blacklisting addresses affiliated with the developers and deploying blockchain analytics to identify the bad actors.”
The play-to-earn SQUID protocol is built on Binance Smart Chain (BSC), but Binance emphasized that BSC is an open-source ecosystem and so the company does not have oversight over projects built on the network.
What you should know
A Squid Game token going by the ticker, ‘SQUID’, which was inspired by the popular Netflix hit series, surged more than 230,000% in the past week to trade as high as $2,861.80, according to coinmarketcap, lost its entire market capitalization as the token traded less than half a cent.
According to Binance, the Binance Smart Chain-based gaming token is suspected to be a rug pull as token holders were unable to sell their tokens after they purchased it. Binance determined the developers had used a coin mixer called Tornado Cash to obfuscate their transactions.
The Binance spokesperson stated that the company will also provide their findings to law enforcement officials in the appropriate jurisdiction. The spokesperson added, “These types of scam projects have become all too common in the DeFi space as speculative crypto investors seeking the next ‘moon shot’ are quick to invest in projects without doing the appropriate due diligence.”
Binance is exploring options to assist those who bought the token and lost out in the crash. It is reportedly blacklisting addresses affiliated with the developers and using blockchain analytics to identify bad actors. It hopes to recover lost funds, although this seems a relatively remote possibility.
Despite all that’s happened, some extremely optimistic users are still buying the token in hope of a resurrection, with the price surging 555% in the past 24 hours. SQUID traded 9.5 cents as of the time of this writing.
Investors are always advised to DYOR, an acronym in the cryptocurrency world which stands for Do Your Own Research. These types of fraudulent projects happen all the time in the cryptocurrency world and we will see more of its type. Also, investors are advised to avoid projects with “anti-dumping technology,” because once you purchase the token, you will be unable to sell, irrespective of how the price appreciates.
Shiba Inu falls after whale moves $2.3 billion
Meme coin investors are panic selling the Shiba Inu token as a whale who bought $8,000 of Shiba Inu in August 2020 that was valued at $5.7 billion at Shiba Inu’s all-time high, moved a total of $2.3 billion out of his wallet.
Many assumed the whale lost his keys (access to his account) given the lack of activity in the wallet since last year. Many analysts also believed that he should have sold his tokens a long time ago when Shiba came into little profit.
However, yesterday, many were shocked to see that the whale still had access to his wallet and the cryptocurrency community are calling it the ‘greatest trade of all time.’ As he turned $8,000 to $5.7 billion in just 400 days.
What you should know
The whale moved ten trillion, one hundred thousand Shiba Inu tokens (10,000,000,100,000) to four separate wallets. Each transaction was worth approximately $586 million, totalling about $2.3 billion.
The whale owns such a large percentage of the supply, that any liquidation could potentially prompt a massive price plunge.
The price of Shiba Inu quickly responded to the whale’s movement of the fund. The price lost 11.81% to currently trade $0.00005859 as of the time of this writing. The price is down over 30% from its all-time high.
There was an increase in transaction volume by over 50% to stand at $8 billion, since the whale moved the funds which would suggest selling pressure on exchanges.
According to coinmarketcap, the ownership of Shiba Inu is concentrated, with the top 10 wallets holding almost 72% of the coins in circulation. The whale’s original wallet still currently holds over $1.75 billion worth of Shiba Inu tokens.
Although there is a rally in the meme coin industry, investors are advised to invest with extreme caution as these coins are very volatile and could result in the total loss of an investor’s portfolio. The wallet address can be viewed on Etherscan with address: 0x1406899696aDb2fA7a95eA68E80D4f9C82FCDeDd
Due to the recent price decline, Shiba Inu has fallen out of the top 10 by market capitalization list, to currently stand at #11, with a market capitalization of $31.2 billion.
U.S central bank has no plans to ban Bitcoin or crypto
Jerome Powell, the United States’ Federal Reserve Chairman believes regulation of the cryptocurrency market is critical, but the bank has no intention to outrightly ban Bitcoin (BTC) or other digital currencies.
Powell clarified that a China-style ban on digital assets isn’t something he’s considering when he responded to a question from Republican Representative, Ted Budd. Rep. Budd asked about safety regulations for stablecoins and about the central bank’s ongoing discussions about a so-called “digital dollar” in response to Powell’s comments.
Despite being similar to money market funds and to bank deposits, stablecoins are outside the regulatory perimeter, “it is necessary for them to be regulated,” Powell said while adding that “the same rule applies to the same activity.”
Although the Fed has been considering a central bank digital currency for a while, policymakers are still undecided about its implementation. A number of studies have been commissioned by the central bank about the advantages and potential roadblocks of issuing a CBDC.
Powell is the chairman of the Federal Open Market Committee, which is responsible for determining US monetary policy.
The Committee decided earlier this month to leave existing stimulus programs intact while signalling a possible wind-down of the COVID-19-induced bond purchase program. Stocks and crypto assets are among the risk assets that appear to have been impacted by the warning.
Powell had earlier said the Fed wasn’t in a rush to join the trend, despite several central banks launching their own CBDCs.
Managing by getting things right, rather than speed, is the focus for the Fed Chair while noting that the US does not lag behind other OECD countries in CBDC innovation.
Government policymakers are pushing an anti-crypto narrative that features CBDCs at the forefront.