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Study Reveals 40% Of South Africans Embrace Web3 Technology

A recent survey conducted by Consensys sheds light on the level of familiarity and opinions regarding Web3 and cryptocurrencies among South Africans. The study found that approximately 40% of the participants are familiar with the concept of Web3, indicating a considerable awareness of emerging technologies in the country. Notably, the term “Metaverse” emerged as the most recognized concept among respondents, followed by non-fungible tokens (NFTs) and Web3.

When questioned about the skills required to engage with Web3, 43% of the surveyed South Africans identified financial trading as the most crucial prerequisite. Meanwhile, 24% emphasized the significance of software engineering skills, and 17% highlighted marketing expertise. These findings suggest that a diverse set of skills is perceived as valuable for meaningful participation in the Web3 ecosystem.

The survey also revealed that half of South Africa’s population believes that the existing financial system could benefit from improvements. Encouragingly, an even larger proportion of respondents expressed confidence in the availability of technology capable of enhancing the financial system. The report indicated that 80% of the population agreed that the necessary technology for transforming or rebuilding the financial system already exists, with only a small minority (4%) disagreeing.

Regarding cryptocurrencies, an overwhelming 98% of the respondents had heard about them. However, perceived barriers deterred many from engaging further. Among the cited obstacles, 59% believed that scams pose a significant risk, while 48% highlighted the volatility of the crypto market. Additionally, 40% expressed concerns that the underlying financial technology supporting cryptocurrencies is too complex, primarily accessible to tech-savvy individuals. In contrast, only 13% considered the technology to be lacking innovation or differentiation from existing systems.

Concerning regulation, 46% of the participants advocated for heavy regulation of cryptocurrencies to ensure stability in traditional financial markets and investor protection. Conversely, a mere 7% felt that self-regulation within the industry would suffice.

These survey findings provide valuable insights into South Africans’ perceptions of Web3 and cryptocurrencies. The notable levels of awareness and recognition of emerging technologies indicate a growing interest in the potential of decentralized systems and digital assets within the country.

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Business

Venture Capital Investments In Crypto Companies Drop by Over 70% In One Year – Report states

Venture capital investments in cryptocurrency companies have experienced a significant decline of more than 70% over the past year, as reported by RootData, a prominent crypto data provider. The data reveals that in June 2022, the digital asset space secured $1.81 billion across 149 funding rounds. In stark contrast, this year witnessed only 83 projects raising a total of $520 million, making it the lowest-funded month recorded to date.

RootData’s findings indicate a clear downward trend in venture capitalists’ interest in the digital asset space, despite occasional increases in certain months. Notably, September 2022 set a record high with $1.85 billion in funding, distributed across 138 rounds. June of the previous year had the largest number of funding recipients, with 149 rounds.

The infrastructure category emerged as the top-funded sector, with $213 million raised last month for 26 projects. However, this still represents a nearly 50% decrease compared to the previous month, when 28 projects received $410 million in funding.

Among the infrastructure projects, Gensyn AI, a UK-based startup, secured a significant victory by raising an impressive $43 million in a Series A round led by a16z crypto.

The second most funded category is CeFi, or centralized finance, which includes companies like OPNX and Chiliz. It received $101 million, accounting for almost 20% of the total financing. Games followed closely in third place, with $62 million, with Mythical Games leading the way by raising $37 million in its Series C1 funding round. DeFi and NFTs complete the list of funded categories, ranked accordingly.

In the past year, Ethereum dominated the funding landscape with 1,826 projects receiving financial support, followed by Polygon (MATIC) with 1,076 funding rounds.

Coinbase Ventures emerged as the most active venture capital firm, participating in 71 rounds over the past year. Hashkey Capital and Shima Capital followed closely, funding 54 and 49 projects, respectively. It is worth noting that the once-prominent crypto asset class has taken a back seat to other investments, particularly in the field of artificial intelligence.

The diminished interest from venture capitalists in the crypto asset space can be attributed to various factors. Companies like FTX and Terra, which have faced negative publicity, may have contributed to the decline, as well as the banking turmoil that affected crypto-friendly banks. Additionally, recent regulatory clampdowns on platforms such as Binance and Coinbase in the United States, a country that has been a leading force in crypto investments, have further dampened investor enthusiasm.

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Crypto Offers Africans Empowerment From Inflation and Corruption – Experts Assert


A growing number of crypto experts and executives are highlighting the transformative power of blockchain technology in Africa. According to them, contrary to Western investors’ focus on speculative trends, blockchain is proving to be a practical solution to pressing issues such as hyperinflation and corruption on the continent.

Chris Maurice, the founder, and CEO of Yellow Card, Africa’s largest cryptocurrency exchange, emphasized the rapid growth of crypto in Africa. He explained that crypto enables Africans to liberate themselves from the shortcomings of the traditional financial system and engage in freer transactions.

Maurice emphasized that crypto in Africa tackles tangible challenges related to banking, currencies, and inflation. Use cases in Africa predominantly involve international payments, remittances to friends and family, and protecting against inflation. He believes that Africa embodies the original mission of technology more closely than any other region.

Kevin Imani, the founder, and CEO of Sankore 2.0, an affiliate of Near Protocol, underscored the potential of blockchain-based payments as a tool for safeguarding human rights. In underdeveloped nations, where citizens face hyperinflation and corruption, cryptocurrencies offer a lifeline by providing financial inclusion and greater control over money.

Sub-Saharan Africa experienced an estimated inflation rate of 14.5% in 2022, marking the region’s highest annual change since the 2008 recession, according to Statistica. Imani stressed that cryptocurrencies offer an obvious solution for Africans, enabling them to counter weak national currencies, combat corruption, and enhance financial inclusion.

Okoye Kevin Chibuoyim, the founder and CEO of GIDA, a crypto education platform based in Nigeria, sees cryptocurrency as Africa’s opportunity to be part of something transformative. He highlighted the blockchain’s transparent nature, which instills trust in a region accustomed to unaccountable and opaque governance.


Maurice also highlighted Nigeria as a prime example of widespread cryptocurrency adoption in Africa, with 47% of Nigerians reportedly owning or transacting with crypto on a daily basis. While Botswana enjoys greater legal and regulatory clarity regarding cryptocurrencies, Investopedia reports that countries such as Cameroon, Gabon, Guyana, Lesotho, and Libya have declared cryptocurrency illegal.

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VALR Launches Staking On SOL And Avax Blockchains

VALR, the largest crypto exchange in South Africa in terms of trading volume, has introduced a new product called Staking, enabling its customers to earn an annual percentage rate (APR) of up to 5.9% on selected crypto assets. The staking service offered by VALR initially supports two crypto assets and their respective blockchains: SOL (Solana) and AVAX (Avalanche).

Staking provides VALR users with the opportunity to earn additional coins as rewards by contributing to the security and validation of transactions on a blockchain network in an energy-efficient manner. Staking primarily takes place on Proof-of-Stake blockchains, which differ from the more energy-intensive Proof-of-Work blockchains like Bitcoin.

Farzam Ehsani, Co-founder and CEO of VALR expressed enthusiasm about introducing this innovative product to the market. He highlighted that VALR handles all the technical aspects of on-chain staking, making it easy for customers to utilize their crypto assets. Furthermore, customers can stake and unstake their assets at any time, giving them control and flexibility over their holdings.

Ehsani also emphasized that VALR never lends out customer funds to third parties, ensuring that the funds remain securely in VALR’s custody at all times. The staking rewards are generated directly from the blockchain protocol itself, which underscores the fundamental advantage of staking.

Established in 2018, VALR has achieved a trading volume of over $10 billion and raised $55 million since its inception. The exchange offers customers the ability to trade bitcoin and a wide range of other crypto assets at some of the lowest fees globally. VALR now serves over 450,000 retail customers and more than 800 corporate and institutional clients worldwide.

Recently, VALR obtained approval to provide crypto services in Europe and is currently in the process of acquiring licenses in Dubai and Mauritius.

VALR’s staking service launch follows closely on the heels of rival exchange Luno’s introduction of Ethereum (ETH) staking. Luno customers can now open a staking wallet and earn up to 4% per year in ETH through this service.

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Business

FTX Accuses Former Executive of Using ‘Hush Money’ to Silence Whistleblowers

Cryptocurrency exchange FTX has filed a lawsuit against its former regulatory and compliance executive, Daniel Friedberg, alleging that he orchestrated a series of payments to prevent employees from exposing the exchange’s internal issues. FTX’s complaint, filed on June 27, claims that Friedberg acted as a “fixer” for FTX co-founder Sam Bankman-Fried, with Bankman-Fried’s father advocating for Friedberg to be given a central role within the organization.

According to FTX, Friedberg made “hush money” payments to two potential whistleblowers, aiming to prevent them from disclosing information about regulatory concerns and the alleged close connections between FTX and Alameda, a related entity. The lawsuit details one incident where Friedberg retained the attorney of a whistleblower after paying them off, effectively ensuring their silence.

In the 40-page legal filing, FTX levies 11 civil charges against Friedberg, including allegations of breaching legal duties and approving fraudulent transfers and “loans” to other former FTX executives. Throughout his 22-month tenure at FTX, Friedberg received substantial compensation, including a $300,000 salary, a $1.4 million signing bonus, a separate $3 million cash bonus, an 8% equity stake in FTX US, and cryptocurrency holdings valued at tens of millions. FTX is seeking to recover these assets.

Certain portions of the complaint, particularly those related to the amounts paid to the whistleblowers, have been redacted. However, the lawsuit describes an extraordinary settlement of undisclosed value given to a female FTX US employee referred to as “Whistleblower-1,” who worked for less than two months at the exchange. FTX claims that the settlement was in response to a demand letter from Whistleblower-1, alleging that Alameda was merely an extension of FTX, designed to boost investor confidence in FTX projects and increase the prices of projects developed or invested in by FTX. The complaint also suggests that sensitive company information was openly shared on Slack, allowing employees to make trades based on non-public information.

Furthermore, the lawsuit highlights another instance where Friedberg terminated an attorney, referred to as “Whistleblower-2,” who raised concerns about governance and regulatory issues within Alameda, a company associated with FTX. The person received a redacted severance package despite working at Alameda for less than three months.

Recent reports have further implicated Friedberg, with FTX’s restructuring chief accusing an unnamed senior attorney of facilitating and concealing the mingling of customer funds. The Wall Street Journal, citing insider sources, identified Friedberg as the individual in question. Friedberg has also been reported as providing information to investigators from the U.S. Attorney’s office.

Additionally, a class action lawsuit involving celebrities who allegedly promoted FTX includes evidence provided by Friedberg that potentially undermines key defenses made by some of the defendants.

The legal battle between FTX and its former executive raises concerns about governance and regulatory issues within the exchange and its associated entities.

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Business

Bitcoin Miners’ Record Revenue Surges – $128M Sent to Exchanges

Bitcoin (BTC) miners have reached a significant milestone by sending unprecedented amounts of BTC to centralized crypto exchanges. According to the latest data from the on-chain analytics platform Glassnode, Bitcoin miners have been actively engaging with exchanges, transferring a staggering $128 million over the past week. This figure represents a remarkable 315% of their daily revenue.

While there have been instances of miners directing profits to exchanges during the 2021 bull run and a capitulation inflow when markets hit rock bottom in late 2022, this recent surge far surpasses any previous occurrences. Typically, miners resort to cashing out and covering expenses when they transfer BTC profits to exchanges.

This surge in miner activity aligns with Bitcoin’s recent price surge, as the cryptocurrency reached its highest price of the year, briefly touching $31,185 on June 24. Experts, including Ki Young Ju, the co-founder, and CEO of CryptoQuant, have identified this price range as an opportune time for miners to sell, citing an attractive price-to-earnings ratio.

However, despite the influx of BTC from miners to exchanges, Bitcoin’s price has yet to experience a significant impact. As of now, the asset remains slightly above the $30,000 threshold. The $31,000 price zone has proven to be a major resistance level for BTC, with previous attempts in mid-April and late June failing to break through. In the event that bulls are unable to establish new ground, potential losses may occur, particularly if miners begin liquidating their holdings.

Although Bitcoin mining profitability, measured by hash price, has slightly increased due to the rise in BTC prices, miners continue to face numerous challenges. Despite Bitcoin’s year-to-date price surge of over 88%, profitability has declined by more than 30% since July 2022 and over 80% since the peak of the 2021 bull market.

Moreover, Bitcoin miners must contend with near-record hash rates of 377 EH/s and peak difficulty levels, exacerbating the uphill battle they face. The combination of rising hash rates, increased difficulty, and higher energy prices has placed significant downward pressure on mining profitability. Consequently, miners may be compelled to sell their hard-earned Bitcoin as an unpleasant necessity to cover expenses.

As Bitcoin’s market dynamics evolve, the ongoing interaction between miners and exchanges provides insights into the ecosystem’s liquidity and potential price movements.

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Nigeria among top 10 countries for crypto as Africa gets 0.5% global blockchain funding

Nigeria has secured a spot in the top 10 countries globally for crypto adoption, as per the “State of Web3.0 in Africa” report by Emurgo Africa and PwC. The report highlights the rapid growth of blockchain investment in Africa, with funding skyrocketing by 1,668% in 2022, reaching $91 million in countries like Kenya, South Africa, and Nigeria. It showcases the potential of blockchain in various sectors, such as SME financing, supply chain management, and digitizing trade infrastructure.

Kenya leads in blockchain adoption in East Africa, while South Africa embraces Web3.0 and blockchain technologies for transparent data management. Nigeria’s high-ranking position emphasizes its role in driving financial inclusion and innovation in the digital currency sector. These developments solidify Africa’s contribution to the global digital revolution.

The MENA region emerges as the fastest-growing crypto market, with increasing user participation and regulatory developments. While Africa currently receives only 0.5% of global blockchain funding, its commitment to Web3.0 technologies and digital currencies has the potential to reshape the continent’s financial landscape and foster unprecedented financial inclusion.

Amid weakening local currencies, there is a rising demand for USD-pegged stablecoins in Africa, offering reliable asset value protection and cost-effective payment solutions. This highlights the adoption of digital currencies and blockchain technology as practical solutions in economically volatile environments.

According to Ahmed M. Amer, CEO of EMURGO Africa, Web3.0 technologies are transforming Africa’s digital landscape by addressing long-standing challenges and empowering individuals. The report emphasizes the importance of collaboration among stakeholders, policymakers, and regulators to unlock the full potential of Web3.0 technologies and drive positive change across Africa.

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Business

Crypto Enterprise Pillow To Exit Nigeria

Singapore-based crypto startup Pillow has recently made the decision to discontinue its services, just a year after expanding into Nigeria and Ghana. The closure of the startup is attributed to the current regulatory climate and its impact on the associated financial infrastructure.

The announcement was made to Pillow’s user base through an in-app message, which reportedly consists of over 75,000 individuals from 60 different countries. Users were notified to withdraw their funds promptly, as the company plans to facilitate the process and ensure a smooth transition. A deadline of July 31st, 2023, has been set for users to withdraw their holdings. While the app will be removed from the Play Store by that date, bank withdrawals will be suspended on July 7th, followed by crypto withdrawals on July 31st.

Although the company’s founders, Arindam Roy, Rajath KM, and Kartik Mishra, have not made a public announcement regarding the closure, this marks the end of Pillow’s mission to empower individuals in emerging markets to combat inflation. The startup had secured approximately $21 million in funding from 15 investors to support this vision.

Pillow’s decision comes as a surprise, considering that just a few months ago, the startup was actively advertising job vacancies. However, it sheds light on the challenges faced by crypto startups as they navigate regulatory environments around the world. These pressures can have a significant impact on the sustainability and operations of such ventures.

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Business

Crypto Economy Rises With Bitcoin Leading The Way

Over the past few hours, the cryptocurrency market’s worth has grown by an additional $30 billion according to CoinGecko. This week witnessed Bitcoin (BTC) soar by 15.7%, while Ethereum (ETH) jumped by 10.4%. Apart from BTC, Cardano (ADA) experienced the largest weekly gains among the top ten cryptocurrencies by market cap, amassing 11.3%.

In the past day alone, global crypto trade volume reached $38.62 billion; of this sum, $24 billion were paired with stablecoins. The most significant weekly gain was achieved by bitcoin cash (BCH), which rose 88.2% against the U.S. dollar. 

Pepe (PEPE) also emerged as one of this week’s market frontrunners, increasing by 64.7% within seven days. In terms of trade volume within a day’s time frame, PEPE occupies today’s eleventh position among top traded cryptocurrencies per coin. Furthermore, decentralized finance (defi) platform Aave’s crypto asset, aave (AAVE), witnessed a 47.1% increase this week. Aave currently ranks ninth in global trade volume, reporting a substantial $559 million over the past day.

Bitcoinsv (BSV) experienced a notable 44.8% weekly uptick against the dollar, making it the fourth-largest gainer in growth. Additionally, the kava (KAVA) token rose by 36.7%, and synthetix (SNX) leaped by 28.3% within a week’s time. 

Despite these gains, six cryptocurrencies incurred losses ranging from 1.2% to 6.8%. Among these are two gold-backed assets: XAUT and PAXG. Kucoin (KCS) lost 6.8% against the U.S. dollar this week, rocketpool (RPL) dropped by 5%, and BNB shed around 2.8% this week. Another loser was BitTorrent (BTT) as it lost 1.7% against the U.S. dollar over the past seven days.

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Business

Blockchain DevFest 2023

Uganda is home to a growing crypto and Web3 community. On June 24, Kampala hosted the second edition of Blockchain DevFest, organized by Block Bunch in partnership with Celo, Muda, Worldcoin, Ngeni Labs, and Binusu. 

The event which attracted a great number of local and foreign blockchain entrepreneurs and enthusiasts was aimed at ideating, discussing, and collaboratively finding blockchain solutions for Uganda and Africa and understanding ways the community can work towards adopting blockchain technologies.

The ideathon process started a week before the main event. It included generating and refining news ideas and blockchain solutions that address Africa’s needs and challenges. Some of the ideas were showcased at the event. 

Some of the topics discussed include Blockchain, Web 3.0 and its future, Leveraging NFTs for social good, DApp development, and the blockchain regulatory landscape among others. 

While Uganda has witnessed significant growth in cryptocurrency and blockchain activities, the local regulatory bodies have shown reluctance toward embracing these technologies. The Central Bank, for instance, has expressed concerns about the use of cryptocurrencies such as Bitcoin, citing the absence of robust consumer safeguards and a comprehensive regulatory framework to oversee their utilization. In addition, the Central Bank has cautioned investors about the risks associated with multi-level marketing (MLM) schemes, which have become prevalent in Uganda. Furthermore, the Central Bank issued a circular instructing all payment licensees to refrain from facilitating cryptocurrency transactions. 

Commenting further on this Timothy Kajja, a Legal Associate at KTA Advocates stated that while regulators enforce laws on decentralization to protect consumers and blockchain service providers and developers, some of them have failed to understand what they are regulating. He further noted that while most Central banks have expressed enthusiasm to participate in the field through Central Bank Digital Currencies(CBDCs), feedback and performance from countries like Nigeria, that have fully instituted such measures, have been subpar.

In spite of regulatory warnings discouraging the use of cryptocurrencies, Ugandans remain undeterred and continue to exhibit a strong interest in digital assets. With high unemployment rates witnessed among the youth in the country, many Ugandans are turning to digital assets for investment and trading.

As a result, an encouraging trend is emerging with the rise of local blockchain startups in Uganda. This surge in entrepreneurial activity within the blockchain space signifies a promising future for the technology in the country. Despite the challenges posed by regulatory concerns, the growing presence of homegrown blockchain initiatives demonstrates the resilience and potential of the industry in Uganda.

The event concluded on a high note with the announcement of prize winners for the best blockchain solutions. YOB, an innovative ticketing application built on the Celo Blockchain, was awarded a $300 prize. Additionally, the AI NFT generator received a $200 prize.