Nigeria overtakes Kenya to claim the first position as the leading country with crypto adoption rate in Africa.
Investors King learnt that Nigeria leads other African countries in cryptocurrency adoption so far in 2021. Nigeria which is also Africa’s largest economy ranked 11th in the world position.
Other African countries on the world list include Morocco which came 2nd in Africa and 14th in the world.
Kenya which led the African continent in 2021 was ranked 3rd in Africa and 19th on the global list.
The ranking which was conducted by Merchant Machine used five different indexes which include; On-chain cryptocurrency value received at centralized exchanges, On-chain retail value received at centralized exchanges, Peer-to-peer (P2P) exchange trade volume, On-chain cryptocurrency value received from Defi protocols, and On-chain retail value received from Defi protocols.
The report further stated that despite the ban on cryptocurrency-related transactions by the Central Bank of Nigeria (CBN), about 33.4 million Nigerians still traded or hold crypto assets.
Millions of Nigerian youth have taken to cryptocurrency in recent years either as a way to attain financial freedom or to hedge against the downward pressure on the naira.
Google trend ranked Nigeria as the country with the highest number of bitcoin searches in the world.
The challenging economy and the high rate of unemployment which the National Bureau of Statistics (NBS) has put at 33.3 percent have made many Nigerians take to cryptocurrency as an alternative way of revenue not minding the volatility risk.
Besides, some Nigerians have found employment opportunities in the cryptocurrency industry either as cryptocurrency content writers, blockchain developers, cryptocurrency influencers or NFT creators.
Meanwhile, many cryptocurrency investors believed that bitcoin and a host of other digital assets are trading at discounts.
Although bitcoin is trading below 20,000 dollars at the time of this report, many cryptocurrency investors, however, believed that the market will soon rebound.
Binance CEO, Zhao to Create $1bn for Purchase of Distressed Assets
According to an interview with Chief Executive Officer Changpeng Zhao, cryptocurrency exchange Binance wants to create a fund of about $1 billion for the potential purchase of distressed digital assets.
In an interview with Bloomberg, Zhao made a suggestion about possible funding increases. He said, “If that’s not enough, we can allocate more.”
The recovery fund Zhao’s business plans to set up to help cryptocurrency projects experiencing a liquidity crisis as a result of the failure of rival FTX has drawn a lot of interest from industry players, Zhao said last week while addressing a conference in Abu Dhabi.
Zhao stated he doesn’t have a precise number in mind for the size of the recovery fund while speaking at a conference in Abu Dhabi.
He declined to name other exchanges or institutions at this time, but said that there were “players that have strong financials and we should band together; we’ve got significant interest so far.”
Zhao stated that Binance has strong reserves, but he did not specify how much the business would contribute to the fund.
Zhao remarked that Crypto didn’t require saving. “Crypto will be fine.”
Zhao stated that more information about the fund will be made available over the following two weeks.
Investors King learned that earlier today, Binance’s Twitter account posted information about the launch of a new project and token sale by Binance Launchpad. Similarly to this, Binance has released information about the upcoming token sale for HOOK, the Hooked Protocol’s native cryptocurrency.
In the same manner, as with earlier projects that Binance has launched on its platform, the token sale will be conducted as a lottery. Participants’ BNB balances will be recorded starting at 0:00 UTC today and continuing until 0:00 UTC on December 1.
Snapshots of balances will be made on an hourly basis during that period of seven days.
The self-custody wallet NGRAVE has received a strategic investment from Binance, and the company will manage its Series A round. The largest exchange by volume has decided to capitalize on the growing demand for hardware wallets. After the recent failure of the important cryptocurrency exchange FTX, a rise has been noted.
FTX Confirms Owing its 50 Top Creditors $3.1 Billion
Foremost cryptocurrency exchange company, FTX, which filed for the United States (U.S) bankruptcy court protection, has revealed it owes its 50 biggest creditors nearly $3.1 billion.
FTX is a Bahamas-based cryptocurrency exchange. The exchange was founded in 2019 and, at its peak in 2021, had over one million users and was the third-largest crypto exchange across the globe by volume.
In the court filing made on Saturday 19th of November, 2022, the exchange corporation confirmed it owes its top ten creditors alone, around $1.45 billion – declining to mention their names.
Since 11 November 2022, FTX has been in bankruptcy proceedings in the US court system following a liquidity crisis.
FTX and its affiliates filed for bankruptcy in Delaware on November 11, in one of the highest-profile crypto deals, rendering almost 1 million customers, including other investors to face total losses in the billions of dollars.
FTX on Saturday assured it has launched a strategic review of its global assets; preparing the sale of some assets; and reorganization of some sister businesses. A hearing on FTX’s so-called first-day motions commenced on Tuesday 22nd of November 2022, before a U.S. bankruptcy judge in a separate court filing.
Investors King learnt the collapse of FTX impacted negatively on the cryptocurrency industry, by extension reducing the paper fortune of its 30-year-old founder, Sam Bankman-Fried, from more than $15 billion to almost nothing within days.
The sudden implosion of FTX prompted financial experts to clamour for a mechanism capable of bringing crypto within the regulatory framework.
Investment analyst, Jon Cunliffe, at an event organized by Warwick Business School said “While the crypto world is not at present large enough or interconnected enough with mainstream finance to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly.”
Cunliffe warned “We should not wait until it is large and connected to develop the regulatory frameworks necessary to prevent a crypto shock that could have a much greater destabilising impact.”
FTX recently gained the support of top-notch investors such as Sequoia Capital; the world’s largest asset manager BlackRock; and a handful of known hedge fund managers. It also enjoyed celebrity endorsements American football star, Tom Brady, and comedian Larry David.
Binance to Launch Recovery Fund for Viable But Low Liquidity Cryptocurrency Projects
Key cryptocurrency players to start co-investing in strong but liquidity-challenged cryptocurrency projects.
Following a series of crises rocking the cryptocurrency space, Binance has announced plans to partner with other industry players with cash to provide liquidity support for strong cryptocurrency projects in a liquidity crisis.
Other industry players, Tron, Huobi Global and Poloniex have said they will support Binance through co-investment in this initiative.
Earlier this year, Luna with a $40 billion market value plunged to zero with cryptocurrency investors and other people familiar with the situation accusing the founder of transferring millions of dollars from the project prior to the collapse.
Similarly, the FTX exchange platform collapsed with billions of investors’ funds, sending the entire cryptocurrency market into panic with the CEO of Binance predicting more collapse from poorly managed fraudulent companies. This led to aggressive withdrawals from both viable and questionable cryptocurrency projects and subsequently, the stoppage of withdrawal by most cryptocurrency platforms and the eventual decline of Bitcoin below $18,000 a coin to $16,000, down from about $66,000 it traded in 2021.
To avoid more viable cryptocurrency project filing for bankruptcy because of low liquidity caused by the activities of fraudulent projects, Binance and other key players in the industry will start co-investing in them during a crisis like this.
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify,” Binance CEO stated.
“Also, welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”
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