In the crypto-verse, Nigeria remains one of the fastest-growing and lucrative markets for crypto traders and global investors to be in.
Data retrieved from a Chainalysis report ranked Nigeria as the eighth (out of 154 countries) in its 2019-2020 global adoption index. Africa’s largest economy is first among other African countries in peer-to-peer payments (moving $139 million in the past year).
The increased usage by many young, educated Nigerians is often attributed to the high bureaucratic processes by many commercial banks for transfers, not forgetting stringent cash control mechanisms set by the Nigerian Central bank in controlling cash flows. Crypto provides low-fee remittances and an alternative way to preserve and grow wealth.
Nairametrics decided to seek the opinions of crypto experts on what cryptos they would consider investing in, apart from the known flagship crypto Bitcoin. Their responses were as insightful as they were diverse, ranging from popularly known altcoins to some new ones.
Clement Hugbo – Founder and CEO at Crevatal Technologies
“As volatile and unpredictable as cryptocurrencies are, they are still one of the best investments to get right on and it’s never too late.
5 Cryptocurrencies I will advise to invest in at this time are:
- Binancecoin, BNB
- Ethereum, ETH
- Bundle token (coming soon)
- PhoenixDAO, PHNX
- Uniswap, UNI.
I chose these tokens because they not only have infrastructures and working products to back their assets, but they play deeply within the DeFi ecosystem which currently is the future of money.
While Binance is the largest cryptocurrency exchange in the world and has diverse use cases for its token, it recently launched its own Smart chain, bringing DeFi possibilities and flexibilities to more developers and communities. Bundle token will be Africa’s Binance coin as its use cases are diverse, being a partnering project with Binance. PhoenixDAO has diverse products like staking dApps, DAO, events and so much more, with brands using her protocols for products development.
Ethereum, being the mother of smart contracts and Tokenization, has diverse use cases by devs and communities in the ecosystem.
Lastly, Uniswap is the mother of DeFi and decentralization, enabling traders to transact in a permissionless and decentralized platform, completely excluding their parties.
My choices are based on the consistent use cases of these tokens and their relevance to creating lasting solutions in the Blockchain ecosystem.”
Henry Muna – Founder & CEO, Muna Wallet
“USDN (Neutrino USD) is an algorithmic stablecoin soft-pegged to the US Dollar and collateralized by WAVES.
The stable exchange rate is maintained using an advanced stability algorithm.
USDN offers 10-15% annual percentage returns without the risk of liquidation.
It leverages the staking reward system of the Waves monetary policy and LPoS consensus algorithm. Staking rewards are distributed according to your contribution to the network with additional USDN.
Its asset is available on Waves and Ethereum blockchain, with staking services available on Muna, Waves.exchange, Kucoin, and any Etheruem wallet.
1 USDN = 1 USD; it lets traders hedge against market volatility.
USDN staking is governed by a smart contract, not by a central authority.
Neutrino’s smart contract resilience is verified by Beosin (Chengdu LianAn) Technology Co. Ltd.”
David Effiiong (Davizoe) – National community director at Bitfxt Technology
Ethereum: It’s a blockchain that allows decentralized applications to be built on.
Dapps are decentralized applications without censorship which give people freedom. People are building games, and social media platforms on it because of its scalability.
On ethereum, smart contracts are built also; it acts as the middle man.
EOS: EOS is a blockchain network that is more scalable and allows Dapps, and smart contracts to be built. The transaction on this blockchain is less than 5 secs, and on Eos.io you can build several blockchains on it.
The recent mind-blowing announcement is the partnership of Google with EOS; this shows its scalability.
BitDeFi (BFi): It’s a decentralized finance (DeFi) token that brings the banking system on the blockchain.
BFi is just 200,000 max supplies and 50% will be burnt because it uses a burning mechanism which makes it a deflationary token. I can boldly say it’s 100k in max supply because of 50% burning away.
BitDeFi allows you to perform all bank use cases like savings, investment, loan, capital rendering, and many more.
20,000 of BFi will be available for the next 5 –10yrs and it’s a community token which allows banking to be decentralized.”
Charles Okaformbah – Blockchain Solutions Architect
“Asides Ethereum, from a protocol pov, and value that DAO tokens seem to garner in the long run, I would advise traders to look at Polkadot’s DOT.
Currently sitting in the top 10 of coinmarketcap, with one of its founders being Gavin Wood (cofounders of Ethereum), it’s a cross-chain protocol that connects several chains together in a single network, allowing them to process transactions in parallel and exchange data between chains with security guarantees.
It’s been in development for years now and the DOT token is majorly used as a governance token.
Another project from a utility pov would be Kittiefight’s KTY (full disclosure, I’m a team member). Online Betting generates massive tonnes of revenue for its stakeholders.
What if that revenue is shared with a community of users who participate in the funding of each game’s jackpot via a DeFi backed algorithm? Not only that, KTY serves as a utility token for in-game activities. Currently, Kittiefight is rated 8 in the Top 10 DeFi lending platform by coinmarketcap.”
It’s fair to say that the crypto experts interviewed were not short on selecting different altcoins that serve as alternatives to Bitcoin.
That said, crypto experts are also taking advantage of altcoins and their prevalence for high price swings. As the old financial saying goes, volatility is king, on the basis that volatility provides a great way to increase one’s holdings and potentially make some good profits.
120 million XRP worth $76 million moved by a large entity
A large entity moved 119,999,980 XRP (75,551,782 USD) from an unknown wallet to Coinbase, a few hours ago.
The third most valuable crypto by market value, XRP has become the favourite of institutional investors lately, hinting that there may be more than meets the eyes.
Data, however, retrieved from Whale Alert revealed a large entity moved 119,999,980 XRP (75,551,782 USD) from an unknown wallet to Coinbase, a few hours ago.
— Whale Alert (@whale_alert) December 3, 2020
- Wealthy crypto investors seem to be upping their game last quarter of, 2020, as regards moving XRP – the third most valuable crypto by market value, as lately seen by Nairametrics.
- Many crypto experts anticipate the movements of such crypto are coming from major stakeholders of Ripple, on the bias some of these wallets contain a significant amount of XRP.
At the time of writing, XRP was trading at $0.628191 with a daily volume of $11 billion. XRP is up 1.16% in the last 24 hours, with a market capitalization of $28.5 billion. It has a circulating supply of 45,334,295,892 XRP coins and a maximum supply of 100,000,000,000 XRP coins.
What you should know: Ripple is a privately-held fintech company that provides a global payment solution via its patented payment network called Ripple Network (also known as RippleNet).
XRP still remains the only crypto gaining traction among global banks as Japan-based Mitsubishi UFJ Financial Group, with assets of more than USD 2.8 trillion, announced in November 2018 that, in cooperation with Ripple, it would provide an international money transfer service on the payment corridor from Japan to Brazil
Why are whales buying?
Economic historian, Barry Eichengreen, gave a detailed analysis of why cryptos should not just be considered for speculative reasons, as leading crypto assets have shown characteristics of being tangible assets.
“I don’t think that thinking about crypto as speculative investments, is really a long-term viable business model. Speculative investments have come and gone throughout history. Tulips came as a speculative investment and they went. Digital assets that provide actual tangible services like cross-border payments are the ones that are likely to have legs,” Eichengreen said.
Barry went on to explain why crypto has become the new digital gold.
He said, “Gold doesn’t really have any intrinsic value. People [believe] it will hold its value because other people value it. There is, from that point-of-view, a parallel with cryptocurrencies. People pay actual U.S. dollars for it because they think other people will value it and pay actual U.S. dollars for it.”
Explore Research Grade Data on the Nairametrics Research Website
Bitcoin is highly volatile, illiquid, supports digital Euro – European Central Bank
The ECB leader has acknowledged the gains of having blockchain technology in play but is critical about Bitcoin and other Cryptos.
European Central Bank (ECB) leader, Christine Lagarde, is leading the campaign for a digital euro but doesn’t see the flagship crypto, Bitcoin, and other cryptos as ideal for payment.
The ECB leader acknowledged the gains of having blockchain technology in play, but was critical about Bitcoin and other cryptos, particularly on the bias that it’s too volatile to be used in making payments.
“The main risk lies in relying purely on technology and the flawed concept of there being no identifiable issuer or claim. This also means that users cannot rely on crypto-assets maintaining a stable value: they are highly volatile, illiquid, speculative, and so do not fulfill all the functions of money,” Lagarde said.
In this COVID-19 era, Lagarde has declared her support for the digitalization of the Euro, elaborating deeper on what a digital euro could do, such as providing its citizens unrestricted access to money that is backed by a central bank, and allowing the Euro geopolitical area to maintain its monetary status quo.
“It could be important in a range of future scenarios, from a decline in the use of cash to pre-empting the uptake of foreign digital currencies in the euro area. Issuing a digital euro might become necessary to ensure both continued access to central bank money and monetary sovereignty.
“A properly designed digital euro would create synergies with the payments industry and enable the private sector to build new businesses based on digital euro-related services,” Lagarde added.
What you should know
- Some weeks back, Christine Lagarde gave a strong indication that the ECB could create its cryptocurrency within a few years, in what would be a systematical change to the euro zone’s financial system.
- Lagarde hinted that it could take two to four years before the project begins, as it would address concerns over privacy, money laundering, and the technology involved.
Bitcoin has caught our attention – BlackRock
Blackrock CEO, Larry Fink recently revealed the flagship crypto, Bitcoin is on his company’s radar
BlackRock CEO and leader of the world’s biggest asset management firm, Larry Fink, recently revealed that the flagship crypto is on his company’s radar amid the rapid gains recorded by Bitcoin this year alone.
Speaking recently at the Council on Foreign Relations alongside Mark Carney, former Governor of the Bank of England, Fink said, “Bitcoin has caught the attention and the imagination of many people. Still untested, pretty small relative to other markets.”
“Can it evolve into a global market? Possibly,” Fink added.
What you should know
- BlackRock is the world’s biggest asset manager with about $7.4 trillion in assets under management as of the end of Q4 2019.
- Its massive size allows it to do what no other asset management on planet earth can do.
Recall a few weeks ago, BlackRock top executive, Rick Rieder, gave reasons for his bias towards Bitcoin overtaking gold as the go-to store-of-wealth asset.
“Do I think it will take the place of gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around,” Rieder said.
Also, the BlackRock CIO of Fixed Income buttressed his bias on why Cryptos are here to stay, taking into account its role in payments among the world’s millennials:
“I think cryptocurrency is here to stay and I think it is durable and you’ve seen the central banks that have talked about digital currencies. I think digital currency and the receptivity, particularly millennials’ receptivity to technology and cryptocurrency is real. Digital payments systems are real, so I think Bitcoin is here to stay.”
However, the leading asset manager, BlackRock, doesn’t outrightly own any crypto yet. It is indirectly exposed to digital assets through MicroStrategy, a business intelligence company that has most of its savings in Bitcoin.
The world’s largest asset manager is the largest MicroStrategy shareholder, with a 15.2% stake in the firm.