Cryptocurrency
Why Crypto black market is thriving in Nigeria
High demand for Bitcoin by a growing number of Nigerians has led the unofficial crypto market to thrive.
It’s been about two weeks since Nigeria’s Apex bank prohibited regulated financial institutions from dealing with Cryptos or face the wrath. At the fear of Nigeria’s Central Bank, financial institutions immediately began to close crypto-related firms.
In the wake of such a ban, the demand for Bitcoin by Nigerians had exponentially grown so much that it outstrips the African continent.
According to a recent study seen by Nairametrics, data retrieved from Usefultulips (a Bitcoin analytic data provider) revealed that the use of Bitcoin for peer-to-peer lending in Nigeria surged by 16% since the CBN directive took effect about 17 days ago.
Such high demand for Bitcoin by a growing number of Nigerians has led the unofficial crypto market popularly known as the black crypto market to thrive.
READ: Nigerian banks allegedly close accounts dealing with Crypto
A recent study by Nairametrics reveals Nigerians are made to cough a hefty premium on Bitcoin, as recent macro reveals Bitcoin goes for as high as about $75,000 a premium of 36% through these dark channels.
This has caused high discontent and increased the complexity in making Bitcoin transactions through the naira. This is particularly prevalent among a significant proportion of young Nigerians because payment partners that transact with the local currency are no longer willing to deal with Crypto exchanges due to the directive of the Central Bank of Nigeria, putting an indefinite pause on naira deposits to exchanges.
As a result of such an update, local-based crypto exchanges started experiencing liquidity challenges in processing local transactions, as they were virtually cut off from Nigeria’s financial ecosystem triggering a big gap between the Bitcoin price in Nigeria and that across global exchanges.
READ: Crypto market post all-time high, breaks past $1.15 trillion
The recent CBN directive has already strengthened fears among a growing number of Nigerian users that include millennials and small business operators that use such digital assets for payments and hedge against fiat inflation.
Nigeria’s highly young population (data retrieved from the CIA factbook show more than 90% of Nigerian citizens are within the age of 0-54), coupled with its fast-rising internet adoption and smartphone penetration, had provided the synergy for many young Nigerians to stay atop with Bitcoin.
Ray Youssef, the co-founder of Paxful in an exclusive interactive session on the Nairametrics Crypto program via Clubhouse buttressed on Nigerians passion for the fast-emerging financial asset, as over the years, Nigerians have relatively shown a consistent passion for the world’s most popular crypto asset largely being attributed to the ease it brings when making payments for goods and services.
READ: CBN crypto ban and its ramifications for Nigerian banks
Recent information reaching Nairametrics, reveals leading crypto exchanges are endlessly working on solutions that will curb the high premium Nigerians pay through such channels, as some of them retool their services to include Peer to Peer trading in the case of Patricia.
Nigerian-based crypto exchange Buycoins, some days ago via Twitter, announced that its customers could buy their bitcoin through a newly designed crypto-asset that bridges the Naira thus offering the advantages of decentralized blockchain.
READ: XRP in deep crisis, drops 21%
NGNT now lives on the @binance Smart Chain.
It is now [also] backed by BUSD.
We’re excited to be a part of the @BinanceChain community.
More information can be found at https://t.co/s89VEUnKZT
— NGNT (@NGNToken) February 12, 2021
In addition, the world’s largest crypto exchange, Binance recently rolled out new services to enable compliant bitcoin trading in Nigeria. It features the introduction of a new trading pair (NGN/NGN Fiat) and Express mode.
Bottom line: Leading Crypto pundits are therefore not surprised that Africa’s biggest crypto market is not giving up on bitcoin and thus ready to pay a premium to hold on to the asset, irrespective of the Central Bank’s ban.
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Football-based Crypto, is world best performing Crypto in 7 days
Chiliz traded at $0.105397 with a daily trading volume of about $589 million.
A pretty unknown crypto asset, based on arguably the most popular sport has outperformed all major Crypto assets tracked by Nairametrics Week to Week.
At press time, the sport-based Crypto traded at $0.105397 with a daily trading volume of about $589 million. Chiliz is up 97% for the week.
Chiliz is currently ranked the 91st most valuable crypto asset, a market value of $573,581,586 It has a circulating supply of 5,442,094,892 CHZ coins and a maximum supply of 8,888,888,888 CHZ coins
The fast-rising crypto can be traded on the following crypto exchange trading that includes OKEx, HBTC, Binance, Huobi Global, and Xtheta Global.
READ: Red Sunday: Crypto market drops $70 billion in value as Bitcoin, Ethereum, Litcoin tumble
Chiliz, powering Socios.com, aims to give sports and esports fans the ability to crowd-manage their favorite teams, games, leagues, and events.
Football clubs are now using blockchain, to facilitate better experiences for their fans.
Football is by far the most popular game worldwide. The last football World Cup tournament held in Russia 2018, had over 3.5 billion individuals watching the matches. This shows that about half of the world’s population is keen on football.
READ: Big whale makes biggest Bitcoin transfer worth $5.6 billion for just $18
Nairametrics believes such partnerships with these football clubs via blockchain will open more economic opportunities and leverage the wider audience via collaboration with the industry’s global brands.
Socios.com Fan Token partners include Juventus, AS Roma, Galatasaray, FC Barcelona, Atlético de Madrid, Paris Saint-Germain, CA Independiente, Apollon Limassol and esports organizations Team Heretics and OG.
Dozens of more clubs are set to launch Fan Tokens before the end of the year, with many leading IPs from sports and entertainment also primed to join the Socios.com roster in the near future.
Kesiye
February 22, 2021 at 7:31 am
God is in control. Even the banning of crypto currency in Nigeria is God’s way of fixing the issue of credibility and corruption amongst the Nigerian youths because they’re in the majority that trade in crypto. Waiting to see what God is about to do with our leaders.