Bitcoin Trading Volume Rises In Nigeria

Cryptocurrency adoption in Nigeria is expanding. Studies have shown that about 56% of ICOs startups in Nigeria that raise money through token sales die within four months. Although the low lifespan of crypto startups projects in Nigeria stats has shown that the volume of bitcoins transactions rose from N1.5 billion( 4.0M USD) as at June 30, 2018, to N1.733 ( 4.7M USD) billion as at July 7, 2018. March of this year contains the highest volume of transactions which is N1.735 billion.

Due to the drastic drop of bitcoin from $19,00 to $6300 the Nigerian Senate and central bank warn people to avoid investing in crypto, yet Nigerian still because they can see how much potential cryptocurrency assets contains.

In reference of failing ICOs, researchers Leonard Kostovetsky, an assistant professor at Boston College, Carroll School of Management and Hugo Benedetti, a finance Ph.D. student at the school claimed that their study showed that only 44.2% of startups survive after four months after the end of their ICOs. They examined 2,390 ICOs and used the intensity of tweets from the startups’ Twitter accounts as a sign of activity.

The study revealed that the safest investment strategy is to acquire coins during their ICO offering and sell them before the offering end. Although many investors may not be able to access this option, buying and selling the currency within the first six months is advisable. Kostovetsky explains that returns have been declining over time and not as high as investors expect them to be. The study also reveals that ICOs rarely outperform other cryptocurrencies.
Kostovetsky explains,

“People often look at returns and say this is a great deal, but we teach in finance that return is compensation for risk. These are stakes in platforms that have not yet been built, which have no participants yet. There’s a lot of risks. The majority of ICOs do fail.”