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Crypto market meltdown rattles 12 million East African investors

Many people have fallen for Ponzi schemes lately

As extreme market conditions force legitimate crypto-exchanges to close shop with many laying off employees, reports of some crypto-investment schemes disappearing with investors’ funds have started to surface. This raises questions about the future of unconventional assets.

Bitcoin, the world’s oldest and largest cryptocurrency, worth $67,566 in November last year, has shed at least 70 percent of its value and is now struggling to stay above the $20,000 benchmark.

In general, the total global market value for all crypto assets has fallen to about $890 billion from $2.8 trillion last November, which has plunged several East Africans holding cryptocurrencies into financial turmoil.

Also, there are growing cases of fraudulent schemes around cryptocurrency investments, which, according to the American consumer protection agency Federal Trade Commission, led some 26,000 people to lose over $1 billion since 2021 in the US alone.

Just two weeks ago, some cryptocurrency founders disappeared after defrauding Kenyan would-be investors of at least $8.5 million, barely six months after it surfaced on the internet, and this week, four young men were brutally murdered over alleged crypto-scamming.

In Uganda, over 5,000 victims of a crypto pyramid scheme recently lodged a petition demanding that the government should refund them about $2.7 million they lost to a firm allegedly licensed by the state.

Kenyan blockchain expert Prof Bitange Ndemo told The EastAfrican that this season marks the beginning of the waning success of Ponzi schemes clothed in crypto assets investment garb as people have started to learn their anatomy and will avoid them.

Hope springs eternal

Prof Ndemo, who is a former Principal Secretary at the ICT Ministry and chairperson of the Taskforce on Blockchain and Artificial Intelligence, said many people are gullible to crypto-scamming because of a lack of knowledge, coupled with a parlous appetite for fast income.

“By now, many have learnt to be wary of any schemes that promise guaranteed huge returns,” Prof Ndemo said.

“Any scamming, thrives on lack of knowledge. The more people learn about emerging blockchain technology, the less these pyramid schemes will exist,” said George Mwakisha, East Africa’s country representative for Binance, a global crypto exchange.

 

Source: theeastafrican.co.ke

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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