Despite the Central Bank of Nigeria’s decision to halt banks’ involvement in cryptocurrency trading and ease potential pitfall similar to the popular unregulated scheme, MMM, Nigeria’s leading indigenous car manufacturer, Innoson, has partnered with Zugacoin founded by Archbishop SamZuga.
According to a Vanguard report, buyers can now comfortably purchase Innoson products from vehicles, motorcycles to plastics with Samzugar’s Zugacoin.
The partnership was signed at the company’s factory in Nnewi, Anambra State.
Zugacoin was founded in 2020 but was unveiled on December 1st, 2020. On March 3, 2021 Zugacoin made its first conversion into fiat currency.
“Let it be on record all over the world that ZUGACOIN was first Cashed out/ withdrawn/ changed into Fiat currency on 3rd March 2021 by 13 minutes after 11 Antemeridiam (a.m) Nigerian time against all odds. When God says YES nobody can say no. With God all things are possible. All things are possible to him that believes,” the philanthropic Cleric also known as Jehovah’s Field Marshall announced.
However, a quick analysis of Zugacoin revealed scary details. Ranked at #2863 on CoinMarketCap, a global leading crypto platform, the coin was valued at $45,653 per coin on Monday, December 14th, 2020 before rising as high as $51,894 per coin on Thursday 17th, December 2020.
It then dropped by over 40 percent to $29,621 per coin on Saturday, January 2nd, 2021 before rebounding to $53,220 on Sunday, January 10th, 2021.
Zugacoin then plunged from that record high to $1,875 on Thursday, January 14th, 2021 within four days.
This decline continues as the new cryptocurrency further plunged to $63.35 per coin before gaining 16 percent in the last 24 hours to $72 per coin as shown in the chart above. Thanks to the partnership news.
Key details like volume/market cap, market dominance and circulating supply were missing. However, the company plans to supply just 1,000,000 SZC coins.
Zugacoin team, another key factor in assessing cryptocurrency viability, has only one tech developer by the name, Trinity Tom. While the rest are largely business developers and marketers with zero tech background.
Similarly, looking at the company’s Whitepaper, Zugacoin is not addressing any new challenges or providing new solutions that banks and other fintech companies operating across Africa have not addressed. This might be the main reason why the coin plunged that fast.
“Zugacoin is a unique brainchild that aims to rebuild Africa’s dying economy by becoming Africa’s first coin for equity and investment funding for Africa’s government instead of China. Starting a business in Africa can often be a gargantuan task, especially since the prospects of obtaining a loan are few and far between, we will give out loans to aid businesses and encourage investors,” Zugacoin stated in the Whitepaper.
“The Zugacoin ecosystem provides the tools, resources, and ease-of-use necessary for running a successful business. The Zugacoin project will represent a unique access point for rising entrepreneurs in Africa, we will share transaction fees with vendors and merchants, while also integrating our coin to ATM and POS machines across the continent.”
According to Adimuchinobi Chukwuma, a serial entrepreneur who commented on the new cryptocurrency, “there’s a lot of questions the white paper didn’t answer. The Zugacoin doesn’t have a strong utility use cases, the team is not obvious except that it has a name of Bishop on it, other than that lot wasn’t addressed.”
“Also, they didn’t mention anything about if the architecture will be decentralized or centralized, no reference to where we can access the code to a certain the quality of the code. All these matters when it comes to Cryptocurrency. Apparently, the white paper seemingly I will call it “clever paper” that sounds more like someone trying to create another Ethereum or Cardon Network.”
Also, the coin is presently listed only on IndoEx, an Estonia decentralized exchange platform. Meaning, it presently does not meet the requirements of Binance, Coinbase and other top exchange platforms that require broad scrutiny and documentation.
Total Market Value of Top Three Stablecoins More than Tripled YTD and Hit $110B
In the wake of growing interest in the crypto market, stablecoins or cryptocurrencies linked to an asset have seen their market capitalization surge this year.
According to data presented by MejoresApuestas, the combined market cap of Tether, USD Coin, and Binance USD, as the world’s top three stablecoins, more than tripled since the beginning of 2021 and hit over $110bn this week.
Tether`s Market Cap Jumped Over $68B, a 158% Increase YTD
Unlike other cryptocurrencies, stablecoins are relatively less volatile, and their value is determined differently. For example, the price of Bitcoin mainly follows demand and supply, or how many coins are being mined and how many investors want to buy the crypto. On the other hand, stablecoins are connected to the price of an altogether different asset.
Tether’s USDT, for instance, is connected to the price development of the US dollar. If the US dollar falls in the FX market, so does the USDT. However, the price of the fourth-largest crypto by market cap spiked in 2021.
The CoinMarketCap data revealed that Tether’s market cap jumped by 158% year-to-date, rising from $26.5bn in January to $68.3bn this week. Also, as the world’s most traded cryptocurrency, Tether saw its trading volume increase by 35% last month. In July, the world’s most used stable coin hit $1.48trn in monthly trading volume. Statistics show this figure hit over $2trn in August.
Binance USD Market Cap Soared by 742% YTD, the Biggest Increase Among Top Three Stablecoins
Stablecoins are essential for two areas in digital payments that do not prefer volatility. One of them is the Decentralized Finance or DeFi market that relies on cryptocurrencies for payments and loans.
Also, they are seen as the inspiration for so-called CBDC or Central Bank Digital Currencies, like China’s e-CNY currency or the digital euro, an electronic form of money issued by the Eurosystem.
Although far behind Tether as the world’s leading stablecoin, USD Coin has seen much more significant market cap growth this year. Statistics show the market capitalization of the second-largest stablecoin surged by nearly 400% over the past nine months, reaching $29.2bn this week.
Still, that was nearly twice less compared to Binance USD growth this year. In January, the combined value of all Binance USD coins stood at $1.48bn or almost 18 times less than the leading Tether. However, this figure soared to $12.5bn, showing an impressive 742% growth year-to-date.
Ethereum Adds Over 38 Million New Addresses in 2021, 22% of All Ever Created
The Ethereum network has recorded a surge in popularity, with more investors aiming to own part of the second-ranked cryptocurrency. The interest is highlighted by the number of unique new addresses created in 2021 alone.
Data acquired by cryptocurrency trading simulator Crypto Parrot indicates that an average of 149,843 new unique Ethereum addresses has been created daily in 2021 on a year-to-date basis. The highest number of new addresses was created on June 5th at 332,094. So far, in September, a total of 1,389,999 new unique addresses have been created.
Elsewhere, by September 2021, 38,256,193 new Ethereum addresses were created in 2021, accounting for 22.59% of all ETH addresses ever created to date. In general, the cumulative number of Ethereum addresses to be created since inception stands at 169,296,775.
Impact of Ethereum network upgrades on new addresses
Currently, the Ethereum network is undergoing upgrades geared towards transitioning from the proof-of-work protocol to the proof-of-stake system that is energy efficient.
The upgrades play a key role in determining the number of new Ethereum addresses created, and the report takes note of this factor. According to the research report:
“The drop in new addresses comes at a point the Ethereum network upgrade is expected to create a deflation over time as it modifies the auction process. Furthermore, with Ethereum transitioning to the proof-of-stake protocol, the network will likely experience an influx of new users who want to cash in on the staking.”
The new address follows the recent cryptocurrency bull market that saw Ethereum surge in value to a new all-time high price. However, the addresses have plunged in correlation with the general crypto market.
MicroStrategy Acquires Additional 5,050 Bitcoins
Business intelligence outfit and corporate Bitcoin (BTC) whale MicroStrategy has increased its BTC ownership with the additional purchase announced on Monday.
MicroStrategy CEO Michael Saylor announced the purchase of 5,050 BTC for about $242.9 million at an average of $48,099 per coin.
In a Form 8-K filing with the United States Securities and Exchange Commission published on Monday, MicroStrategy stated that it had added 8,957 BTC to its corporate Bitcoin treasury in Q3 2021.
As previously reported, MicroStrategy recently bought 3,907 BTC at the cost of about $177 million between July 1 and Aug. 23.
Following the latest Bitcoin acquisition, the company now holds about 114,042 BTC acquired at an aggregate purchase cost of $3.16 billion. Given the current BTC spot price, the company’s Bitcoin holdings are valued at over $5 billion.
According to the Form 8-K document, MicroStrategy’s Bitcoin cost comes down to about $27,713 per BTC, including fees and sundry expenses.
The additional 5,050 BTC purchase is yet another indication of its intention to expand its Bitcoin position. Despite paper losses on its Bitcoin investment in Q2, MicroStrategy has stated its Bitcoin appetite remained unaffected.
Since announcing its maiden BTC purchase back in August 2020, the business intelligence company has bought more Bitcoin becoming the largest corporate holder of the largest crypto by market capitalization among publicly traded firms in the United States.
Saylor has also become a prominent Bitcoin proponent, regularly encouraging other U.S. firms to add BTC to their balance sheets.
Monday’s purchase announcement comes amid a price decline for Bitcoin, with BTC down almost 3% in the last 24-hour trading period.
The total cryptocurrency market capitalization is down more than 4% as token prices slipped on Monday.
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