Exploring ICOs as a Viable Crypto Investment for Africans

The Bitcoin Barrier: Why Many Africans Can’t Afford It

The staggering price of Bitcoin has put it beyond the reach of countless individuals across Africa. In Nigeria, for example, a single Bitcoin is valued at over N3 million. This astronomical number can be daunting, especially when you consider that approximately half of Nigeria’s 200 million citizens survive on less than N800 per day, or about 2 dollars.

According to the UNDP, around 50.9% of Nigeria’s population lives in multidimensional poverty. To put things in perspective, Nigeria’s minimum wage is just N18,000 (around $60) per month. Now, compare that with the UK, where the per-hour minimum wage is £6.50 (approximately $8.50). Do the math, and it becomes quite clear: not many Africans are about to fork out a whole Bitcoin anytime soon.

ICOs: A Safer Bet for Aspiring Investors

Enter Initial Coin Offerings (ICOs), a fundraising mechanism that presents a glimmer of hope for many would-be crypto investors. ICOs enable individuals to invest in new projects for a fraction of the cost of Bitcoin—think of it as the appetizer before the main dish. However, the ICO space isn’t without its pitfalls, as scammers are as common as Bitcoin enthusiasts. Still, for many Africans looking to dive into the crypto space, the risks of ICOs seem outweighed by their potential rewards.

Voices from the Underground

Seasoned creators like Bashir Aminu, founder of Cryptogene, support the ICO model fervently. He argues, “ICOs are crucial for start-ups in Africa where traditional funding options are scarce. They provide budding entrepreneurs with the necessary push to turn ideas into reality.” Aminu also notes the skepticism surrounding ICOs in Nigeria, as many confuse them with scams, making it a struggle for genuine blockchain ventures to get off the ground.

What do Entrepreneurs Think?

Marcus Adetola, co-founder of Potentiam, echoes Aminu’s sentiments. He believes the ICO method makes fundraising more approachable, allowing the public to get involved easily. However, for many, ICOs remain a mystery. “It’s vital for people to educate themselves about ICOs and how they operate—especially in Africa, where awareness is still growing.”

A Bright Future with ICOs?

Meanwhile, in Morocco, Mounir Belaid is riding the wave of interest in ICOs. He sees them as essential for promoting local projects and attracting global investors. Belaid points out, “Successful ICOs can catch the attention of governments and encourage further local innovation in blockchain. They are a promising way to expedite project realization.” And while he acknowledges that operations may still move forward without an ICO, he admits, “It just takes longer.”