The month of May 2022 will undoubtedly go down in the history books as a significant one in cryptocurrency folklore. What we have witnessed is a spectacular drop in the prices of cryptocurrencies (or crypto assets as some call them) across the board and in one specific case, the almost complete wiping out of the Terra UST stable coin and its associated cryptocurrency, LUNA.
The crash was not limited only to Altcoins, even the granddaddy of cryptocurrencies, the supposed store of value, Bitcoin, crashed from its highs of 2021 to almost half those prices. At the time of writing this newsletter, it was hovering around $30,000. Now, I won’t bore you with details of what could’ve caused this crash (you can read an explanation of the crypto crash here).
As much as many headlines and news are screaming about a crypto crash, we need to distinguish: it is the speculation in crypto prices that is crashing, but crypto technology is still in its infant stages and has not crashed.
Crypto, as inefficient as it is as a payment system in its different flavors currently, is here to stay. Adoption of new technologies does not happen overnight and typically, the path is never clear. Even in the early days of the internet, any who were experts then and are still experts today didn’t see the internet becoming as big as it is today and as important as it is today. However, our desire as humans for efficiency and improving our lives through interconnectedness speeded up the adoption of the internet with all its glitches and inefficiencies in the early years and decades.
Similar applies to the concept of cryptocurrencies. This might not be their final form as we refine them and find new use cases, one thing is almost certain though, decentralization and encryption are here to stay. Whether as a currency, a payment system, a store of value, a protocol, or a platform, is debatable. But the concept and technology are the next steps of progress in the digital technology journey.
This week's top stories
Largest telecommunications companies in Afrika. The Afrikan continent has experienced significant growth in both mobile subscribers and mobile phone shipments in recent years. Telcos are among the top beneficiaries of this. For numerous telecommunications businesses and the founders and CEOs who skipper these successful online ships, Afrika’s digitization has produced great riches. We have compiled a list of the largest telecommunications companies in Afrika based on their latest (at the time of publishing) publicly reported revenues and subscribers. [Continue Reading]
Google for Startups Black Founders Fund for Africa. Autochek, Nigeria’s automotive technology company that aims to make car ownership more accessible and affordable, has acquired KIFAL Auto, Morocco’s automotive technology startup. With a presence already in the West Afrikan region, Autocheck believes its expansion into Morocco will facilitate effective Pan-Afrikan collaboration to drive innovation across the continent’s growing automotive market. Despite the downturn in the automotive industry as a result of the COVID-19 pandemic, Morocco remains one of the more developed automotive markets in Afrika. It is reported to have more than 180,000 new cars and around 560,000 used cars sold annually. [Continue Reading]
Young South African entrepreneurs to watch in 2022. With more and more South African youth unable to find work, young entrepreneurs can play a significant role in creating employment opportunities for their peers. From artificial intelligence (AI) language processing bots to startups challenging traditional farming practices, the young entrepreneurs listed here solve problems in their communities in South Africa, promote sustainability and create jobs. [Continue Reading]
Developing an Afrikan digital village. We spoke with Andile Ngcaba, chairman and founding partner of Convergence Partners, to understand how they decide on their technology investments. Ngcaba also debunks the myth about Afrika being a dark continent and talks us through the acquisition of South Africa’s Syrex, a cloud hyper-convergence company, by inq., a Convergence Partners company. [Continue Reading]