Africans Have Ponzi Schemes to Thank for Early Bitcoin Exposure in the Region
January 25, 2021 11:21 AM
The rise of bitcoin and crypto adoption in Africa has not been a smooth ride as most outside the region think.
Ponzi and Crypto Scams
For countries such as South Africa, Nigeria, and Kenya who were the target market for illicit Crypto Schemes, which brought about Bitcoin and Cryptocurrency Education, struggling in dying economies most African were on the hunt for a means of improving their standard of living.
This made the region full of prey to Ponzi schemes and other Crypto scam programs which made some lose money by becoming victims of these scams. In an environment where cryptocurrency has been largely unregulated Africa is the target for scammers.
Early Crypto Education on Bitcoin
According to recent research conducted using Nigeria, South Africa, Ghana, and Kenya As a case study, the poll showed that many Africans first heard about bitcoin through Ponzi schemes.
A Russian Ponzi scheme that promised investors 100% returns was the largest in the continent. When MMM didn’t fulfill these lofty promises, participants lost their money. BitClub network and Onecoin as other examples of “bad” projects that have flourished in the region, as well as lesser-known scams such as Nurucoin, Crowd1 to name just a few.
Bitcoin and other cryptocurrencies are still new to people in Africa as well as the rest of the world are still getting a hold on which cryptocurrency projects are useful
for them rather than harmful.
For Africans, it is an unconventional route to bitcoin exposure, as most of these schemes added E-books on bitcoin to enlighten their victims on why the need for a change of failing fiat and move to crypto, owning and participating with Bitcoin commands a higher percentage than those who used local fiat currencies.
Scams often target victims in developing countries, as regulations in the finance and investment space are not always solid and/or enforcement is oftentimes lagging.
By preying on their victim's greed and fight for a better life, bitcoin participation on those schemes saw an up rise. Money was lost by those who participated in these schemes but for most that was how they learned about the flagship cryptocurrency Bitcoin, in sad way but definitely an eye opener to many who still stick around bitcoin till date.