The FTX Disaster Undermines The Hopes Of Africa’s Peculiar Crypto Scene

The rise of the cryptocurrency industry in Africa, however a fringe endeavour, is often cited the world over as one of the more promising real-world applications of the disruptive technology beyond the contentious speculation rave. But recent unsettling developments have thrown a spanner in the works.

The extraordinary events of the past week - culminating in the collapse of FTX which until its swift demise was one of the world’s top crypto exchanges - have, according to local industry stakeholders, left enough wreckage and disillusionment in its wake to undo much of the progress made over the past few years.

“The FTX crash will definitely affect the crypto ecosystem in Africa, as exchanges and companies with funds domiciled there will take a big hit,” says Victor Ekwealor, a Blockchain enthusiast and Publisher at Rupt, a knowledge resource on crypto and adjacent ecosystems.

“A lot of the progress made driving crypto adoption on the continent will come undone. The world’s sec...