Cryptocurrency has become very popular among millennials since it became mainstream. Unlike a few years ago when the acceptability of the digital currency was still doubtful, it has now gained sufficient acclaim to qualify for use in making or receiving payments and also as an investment vehicle to hedge against inflation.
Cryptocurrency adoption in Nigeria
Cryptocurrencies are completely decentralized, meaning that they are not governed by any central bank or monetary authority. This has spurred their wide acceptance in many countries including Nigeria.
Nigeria’s predominantly young tech-savvy population is also the reason cryptos have found widespread acceptance in the country. According to Statista, 32% of Nigerians are users of cryptocurrencies, the highest in the world. Estimates show that of the top 10 countries for trading volumes, Nigeria ranked third after the US and Russia in 2020, generating more than US$400 million worth of transactions.
This wide adoption comes on the back of heavy regulations from the nation’s apex bank. However, a number of platforms are aiding the seamless adoption of cryptocurrency and this article highlights five of the most prominent ones in no particular order.
Patricia harnesses the power of cryptocurrency to create alternative solutions to financial infrastructure, digital payments and global E-commerce. The platform allows you to securely buy or sell Giftcards and Bitcoin of any value, store them in a BTC or Local Currency Wallet and smoothly switch between the two for everyday transactions like airtime, data and cable subscriptions. Patricia has over 100,000+ downloads on playstore.
- Receive funds through your Patricia Bitcoin wallet
- Multiple assets support
- Fiat and Bitcoin wallets available
- Buy/Sell Gift Cards
- Instant transactions
- Virtual and physical debit cards available
BuyCoins is a service that enables users to trade cryptocurrency instantly with no wait time. Users can buy/sell cryptocurrency directly via the app without the hassle of looking for traders to buy from or sell to. BuyCoins’ goal is to provide a platform that serves users’ needs – whether it is buying, selling, storing, or transferring Bitcoin, Ethereum, Litecoin, and USD Coin – as conveniently and quickly as possible.
- Fund your account with Naira and easily buy Bitcoin, Ethereum, USDT and other cryptocurrencies.
- Excellent customer service.
- Earn up to 12% interest by locking your crypto savings for a specified period of time.
- Zero transaction fees.
Quidax is an African-focused cryptocurrency exchange that makes it easy for you to buy, sell and store Bitcoin, Ethereum, Ripple’s XRP Litecoin & other cryptocurrencies. At Quidax, one of the long-term goals is to power the next generation of remittances.
The team is a firm believer in leveraging the internet to make the world unshakable when it comes to financing and Blockchain technology. Quidax has 100,000+ downloads on Playstore.
- Naira deposits, withdrawals, and trading pairs available in Nigeria.
- Trade Bitcoin, Ethereum, Litecoin, and XRP with Naira on Quidax using market and limit order.
- Quidax provides secure cryptocurrency wallets for the most popular digital assets including Bitcoin, Ethereum, Litecoin, XRP, Dash, and USDT.
- Instant withdrawal.
- 0% Maker trading fee.
- Quidax has its own API that supports third-party integration for automated trading.
Founded in 2013, Luno has been in cryptocurrency for almost as long as Bitcoin with over 21+ billion dollars in processed transactions.
Whether you’re new to Bitcoin or an advanced cryptocurrency trader, Lunos crypto wallet and trading exchange provides a safe and secure platform to buy Bitcoin and other digital currencies like Ripple, Ethereum, Litecoin and more. With over 7M customers in 40+ countries, Luno has a global team of over 350 dedicated professionals that are always on hand to simplify your crypto journey. The app has over 5M+ downloads on Playstore.
- Save and earn up to 7.6% APY Interest on your Crypto.
- Instant Payment & Withdrawal.
- Available on web, iOS or Android.
- Luno charges a 0% Maker trading fee.
Bundle Africa is a social payments app for cash and cryptocurrency. Founded in 2020 by Yele Bademosi, a former Director at Binance Labs, the app was specially built to serve the need of the typical native African user who prefers “financial services delivered digitally via mobile apps as opposed to visiting brick and mortar bank branches.
The bundle makes it easy and fun to make payments with cash as well as for cryptocurrencies like Bitcoin, Ether, BUSD, and BNB. The bundle has over 100,000+ downloads on Playstore
- Make free transfers to your contacts.
- Enjoy the benefits of saving in dollars with Bundle Vault and earn up to 5.7% returns.
- Change one crypto to another with CoinSwap.
- Zero Transaction Charges.
- Buy crypto including Bitcoin, Ether, BUSD, BNB, Chainlink, and TRON on Bundle with your debit card, a bank transfer or another crypto.
Cryptocurrency exchange platforms facilitate the trading of cryptocurrencies meaning that users are able to send and receive payments from anyone on the network or around the world without requiring approval from any external authority.
Apart from the exchanges mentioned above, there are other peer-to-peer crypto exchange platforms that are suitable for buying and selling cryptocurrency. The volume of crypto transactions in the country and the world has been growing steadily in recent times, so we can expect an equivalent increase in the number of exchange platforms.
Troubling signs on crypto market, SEC tags many crypto assets as Securities
These further suggest the head of the financial watchdog could tighten its grip on the crypto market.
Dark clouds hover above the cryptoverse as the leader of the world’s most powerful investments regulatory agency affirmed most crypto assets as securities.
Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC) in his most recent appearance on CNBC’s Squawk Box, opined that “many” crypto-assets were securities, meaning many of these assets required regulatory oversights and exchanges trading such crypto assets require at least a form of SEC regulation.
"At the core I think investor protection has helped economic growth," says SEC Chair Gary Gensler. "Transparency and competition in markets that's good for investors, that's good for issuers." pic.twitter.com/FoD8MH7JND
— Squawk Box (@SquawkCNBC) May 7, 2021
In his words:
“The extent that something is a security, the SEC has a lot of authority. And a lot of crypto tokens—I won’t call them cryptocurrencies for this moment—are indeed securities.”
What you must know
An asset is considered a financial security asset if it is a tradable financial asset and thus has monetary value.
What Gensler said suggests that the financial assets watchdog could tighten its grip on the crypto market. Recall that SEC is already battling with Ripple and calling XRP a security asset.
However, Gary Gensler described the flagship crypto asset as a store of value but with a very volatile characteristic and not a security.
It’s important to understand why the regulator doesn’t classify Bitcoin as a security. It is based on the fact that its existence began through mining as an incentive in validating a distributed platform. There are no pre-mined coins, no initial token offering, and no kind of business entity governing it.
A few months ago, Nigeria’s Securities and Exchange Commission released guidelines referring to cryptoassets as securities, except proven otherwise.
- The position of the Commission is that virtual crypto assets are securities, unless proven otherwise.
- Thus, the burden of proving that the crypto assets proposed to be offered are not securities and therefore not under the jurisdiction of the SEC, is placed on the issuer or sponsor of the said assets.
- Issuers or sponsors are expected to satisfy the burden of proving that the virtual assets do not constitute securities by making an initial assessment filing.
- However, where the finding of the Commission is that the virtual assets are indeed securities (not structured to be exclusively offered through crowdfunding portals or other exempt methods), then the issuer or sponsor must register the digital assets.
That being said, recent price actions reveal the bullish trend in the crypto market is still very much in play despite regulatory fears surrounding the crypto market as its market value now stands at $2.42 trillion, posting a 2.47% increase over the last day.
Coin of the week: Ever heard of EOS?
EOS is currently trading $11.33 with 936 million coins in circulation and a total supply of 1.02 billion.
EOS was created and designed to allow developers to build decentralized apps (DApps). DApps are any computer applications whose operation is maintained by a distributed network of computer nodes, as opposed to a single server.
The EOS platform was developed by the company Block.one, to make it as straightforward as possible for programmers to embrace blockchain technology and ensure that the network is easier to use than rivals. It also aims to deliver greater levels of scalability than other blockchains which can only do a dozen transactions per second.
EOS was created by Daniel Larimer and Brendan Blumer. Brenden Blumer is an entrepreneur, who was one of the co-founders of Okay.com, a digitally focused real estate agency in Hong Kong while Daniel Larimer is a software programmer who has also started a series of crypto ventures such as the crypto trading platform BitShares and the Steem blockchain. They are both members of Block.one’s executive team, with Brendan Blumer as CEO and Daniel Larimer as CTO.
Why Invest in EOS?
Block.one stated that EOS can accommodate the demands of thousands of DApps, even if they were being used by a high number of people. Parallel execution, as well as a modular approach, are said to drive this efficiency.
EOS represents a truly democratic system that takes into account the will of the people, in this case, its token holders, as they can vote for block producers as well as other matters such as protocol upgrades.
EOS, like many other coins, uses a delegated proof-of-stake consensus mechanism. This concept was conceived by Daniel Larimer and aims to solve some of the flaws that are seen in conventional PoW (Proof-of-Work) and PoS (Proof-of-Stake) systems.
As stated earlier, those who own EOS tokens can vote for representatives who will be responsible for validating its transactions. One of the advantages is that it helps eliminate consolidation, where smaller miners are pushed out by those who have greater levels of computing power and resources.
EOS is currently trading $11.33 with 936 million coins in circulation and a total supply of 1.02 billion. EOS has gained approximately 466% return comparing its 52 weeks low to its current price today. It is currently down 49.71% from its all-time high of $22.89 that was last traded on the 29th of April, 2018.
Recently, after the Biden administration’s proposed tax hike, the coin dropped from its previous 2021 peek of $8.80 to a 0.236 Fibonacci retracement zone of $4.74, creating a new higher-low that indicates a bull market. No surprise that the market broke its previous 2021 high to create a new high of $13.18 on the 6th of May, 2021, following news of the coin proposing to increase its staking rewards. It is believed that this running will lead the coin to break its previous all-time high of 2018.
Although it is not advisable to buy coins at peak prices, recent news as earlier mentioned, suggests that an increase in demand for the coin is imminent. Block.one mentioned that the protocol needs to increase the rate of inflation from its current pace of 1% to a rate between 1.2% and 3.8% intended to increase financial incentives for voters and block producers. While token holders still need to settle on what exact size the inflation rate will increase to, the possibility of higher yields for community participation has brought demand to the coin.
A second major development for the protocol is the EOS PowerUp model, which intends to allow users to pay a fee to power up their account for 24-hours to transact on the network as opposed to paying a transaction fee for every transaction. Block.one mentions that the PowerUP model offers EOS token holders another way to earn a yield by depositing unused EOS tokens to receive a percentage of all the ‘power-up’ fees that are generated by the network. This has become an increasingly attractive option as investors are searching for ways to avoid the high gas fees (transaction fees) and network congestion on the Ethereum (ETH) network.
With the overall cryptocurrency market bullish and projects like Litecoin (LTC) and Ethereum Classic (ETC) reaching new highs, EOS is a blockchain project that could benefit investors as the cryptocurrency bull market continues.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Okomu Oil proposes dividend worth N6.7 billion for shareholders.
- Ardova Plc confirms appointment of Oladeinde Nelson-Cole as secretary.
- Cadbury Nigeria Plc set to hold 56th Annual General Meeting (AGM) on June 16.
- FCMB Group Plc appoints Muibat Ijaiya as Director.
- Afromedia Plc reports a loss after tax of N27.3 million in Q1 2021.