Nigeria’s Central Bank: Crypto Trading Has Not Been Banned

In briefw

  • A Nigerian Central Bank official reiterated that there’s no ban on individuals trading in crypto.
  • Banks remain barred from working with crypto companies.

A senior official from the Central Bank of Nigeria (CBN) rejected claims that the bank has ever banned crypto, reported local media outlet Today NG.

The CBN official, Adamu Lamtek, reportedly said that the bank protected the banking sector from cryptocurrencies—it didn’t ban crypto trading itself.

The clarification comes more than a month after Nigeria’s central bank told all banks to immediately cancel their services for customers who buy, sell, or trade cryptocurrencies. It isn’t clear what prompted the bank’s decision.

“The CBN did not place restrictions from use of [sic] cryptocurrencies and we are not discouraging people from trading in it,” Lamtek was quoted as saying in Today NG. “What we have just done was to prohibit transactions on cryptocurrencies in the banking sector.”

Lamtek spoke on behalf of the governor of the bank, Godwin Emefiele, and reportedly disclosed this at a recent meeting for journalists held by the bank in the Nigerian city Abuja.

But these words shouldn’t be taken as the Nigerian government endorsing crypto; the Central Bank has no jurisdiction over who can trade cryptocurrencies to begin with, explained Danny Oyekan, CEO of investment firm Dan Holdings and social payments app Coins App.

Crypto is under the jurisdiction of Nigeria’s Securities and Exchange Commission. Back in September, Nigeria’s SEC announced plans to regulate the crypto sector by deeming cryptocurrencies securities until proven otherwise.

Despite the regulatory uncertainty, Nigeria is often called Africa’s Bitcoin Nation as the country’s crypto trading volume outpaces most other countries in the world.

The Post-Ban Nigerian Crypto Industry

It’s been just over a month since the Nigerian Central Bank’s ban on financial institutions dealing with crypto companies came into force.

But the Nigerian crypto industry hasn’t died out. “The industry has shown resilience and quickly adapted by developing peer-to-peer exchanges,” Oyekan told Decrypt. “That’s not an easy feat to accomplish in 1-2 months.”

In response to the ban, OTC deals are still underway and the informal peer-to-peer market is also growing, explained Oyekan.

“So basically, the ban only forced the fiat channels underground.”


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Two Hidden NFT Crypto Assets Could Surge 20x This Cycle, According to Trader Jason Pizzino

Crypto analyst Jason Pizzino is naming two non-fungible token (NFT) assets that he believes have the potential to earn traders massive gains this bull cycle.

In a new video, Pizzino outlines the criteria he uses to decide which NFT projects are still worth investing in as the NFT craze rages on.


Pizzino recommends traders find projects that have not already gone parabolic. While projects like Chiliz (CHZ), which is sitting just under a $3 billion market cap and has increased in price by 9,000% this year, could still theoretically double in price, Pizzino looks for projects that realistically have room to grow 5, 10 or even 20x this NFT hype cycle.

The trader also notes that one has to look at an asset’s fully diluted market cap as well as its current market cap.

For example, NFT project Ecomi (OMI) currently has a market cap of $1.9 billion, but if one takes a look at what its market cap would be if all its tokens were in circulation, it would be sitting at a $8.5 billion valuation which would place it in the top 15 projects by market cap.

Two projects that Pizzino believes have room to grow and also have relatively small diluted market caps are those that crypto trader Josh Rager recently mentioned as well, Gameswap (GSWAP) and Shroom.Finance (SHROOM).

Shroom is building an NFT protocol for minting and swapping non-fungible tokens (NFTs), and its companion platform Gameswap specializes in allowing gamers to trade in-game assets.

Pizzino notes that both projects, even if they reached half the market cap that popular gaming token Enjin (ENJ) has, they could each grow by 15 and 20x.

“That’s why these look a hell of a lot more appetizing than getting into OMI or whatever the other tokens we just looked at.”

In particular, the trader notes that it is “still early days” for Gameswap (GSWAP) at it is sitting just above a $20 million dollar market cap.

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How Ethereum low supply on exchanges could drive up ETH price

Research firm Santiment has determined that Ethereum’s supply radius on exchange platforms is at a 28-month low. With 20.1% of ETH in its reserves, the last time the metric was at similar levels was in November 2018.

Ethereum ETH

Above is a look at the relationship between the increase in Ethereum supply on the exchanges and fluctuations in its price. ETH’s rally in recent months corresponds to a sustained decline in this metric.

Ethereum is trading at $1,808 with bearish performance in the 24-hour chart. However, in the last hour ETH is showing an uptrend with 0.3% gains, after a week of negative performance. If the cryptocurrency manages to stay above the current level it could gain more momentum and go after resistance at $1,850.

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Where is Ethereum’s demand coming from?

Two sectors are currently taking a big part of ETH’s supply. Data from DeFi Pulse register 9,4 million ETH locked in DeFi protocols. After registering a drop at the end of February, ETH inflows into decentralized finance protocols have absorbed 1.5 million ETH since March 8.

This trend is continuing and shows no signs of weakening, as more and more users join the sector for profits or to participate in the Non-Fungible Token (NFT) craze.

Ethereum ETH

MakerDAO, Compound y Sushiswap hold the biggest amount of ETH with 3 million and 1.4 million each, respectively. Uniswap, Aave, Alpha Homora, and Balancer follow, but only the decentralized exchange (DEX) holds over 1 million ETH.

On the other hand, Ethereum 2.0 deposit contract has also absorbed a lot of ETH supply. At the moment, it holds 3,559,362 ETH with an estimated value of $6 billion. According to Arcane Research, more institutional demand has come for ETH since late 2020:

the steady increase in ETH loans outstanding. After ending Q1 at 5.5%, the share of ETH loans outstanding grew 177% over the next three quarters, ending the year at 15.5%. Of course, some of this growth is attributable to ETH’s price inflation.

Sustained demand for ETH could positively impact its price and allow the rally to continue through 2021. According to ETH Gas Station, transactions fees on the blockchain are again at record levels with 161 Gwei for the cheapest.


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Top 5 cryptocurrencies to watch this week: BTC, UNI, LUNA, THETA, FIL

Bitcoin (BTC) has been facing stiff resistance near the $60,000 level for the past few days. This suggests that market participants are cautious at these levels and a positive trigger may be needed to drive the price higher and start the next leg of the uptrend.

One of the developments that could be bullish for Bitcoin is that Brazil followed in the footsteps of Canada and gave the green light for the launch of a Bitcoin exchange-traded fund. The ETF will be managed by QR Asset Management and is expected to start trading in Q2 2021.

The Bitcoin ETFs launched by various countries are likely to put pressure on the U.S. Securities and Exchange Commission to approve a Bitcoin ETF because if they do not do that, institutional investors may use the alternatives available in neighboring countries.

Crypto market data daily view. Source: Coin360

Although Bitcoin is showing some fragility near $60,000, Cointelegraph contributor Marcel Pechman analyzed derivatives data from various exchanges to show that top traders are still adding long positions near $57,000.

Bitcoin seems to be consolidating its recent gains before starting the next trending move. But there are several cryptocurrencies that are in an uptrend and may continue their march north. Let’s study the charts of top-5 cryptocurrencies that could remain bullish in the short term.