Crypto Around the Globe (Nigeria & South East Asia Edition)
A look into the global world of crypto. Spotlighting recent developments in Nigeria & SEA.
The Velvet.Capital Mission & Vision
Bring financial independence — free of intermediaries and centralized parties- to the next billion crypto users & become the #1 multi-chain platform to manage digital assets.
Crypto Around the World (SEA and Nigeria Edition)
We’re back once again, this time to give a little shoutout to Crypto’s international community. We in the West are often unaware of the real innovation going on in the emerging economies of the world. In these nations, crypto entrepreneurs and builders are crafting the financial infrastructure for the digital age.
Over 80% of the world's population lives in developing nations, totaling over 6 billion people. It turns out that many of these developing nations are facing crippling economic inflation and are looking for ways to drive financial inclusion. With the emergence of Web3, blockchain technology, and transparent, digital currencies have the potential to transform unstable economies.
Smartphone and computer usage has increased at a faster rate than the world’s population growth. More and more people in developing countries now have access to the Internet.
For regions such as Venezuela, cryptocurrencies offer a means to pay for otherwise inaccessible goods and services. In fact, tens of thousands of businesses in the region now accept digital payments, including US-based chains such as Pizza Hut and Burger King.
This week we will travel the world and explore the increased demand for DeFi and how you can benefit from this surge. We cover the crypto developments in South East Asia along with Nigeria. Stay tuned for our weekly reports summarizing the info you need to become a truly global crypto investor.
Welcome aboard :)
A Cultural Shift:
For decades, developing nations have been poverty-stricken due to geopolitical struggles and war.
However, its once closed doors have now opened.
Vietnam is now home to one of the world’s largest tech industries, and it isn’t slowing down anytime soon. In March 2022, AEX Exchange launched a $100 million dollar fund to support Vietnam’s growing blockchain ecosystem. In June 2022, the Vietnam Blockchain Association (VBA) partnered with Binance to promote educational programs and blockchain research.
Conservative estimates suggest that the interest in Web3 is expected to grow over 80% annually for the next decade. The exponentially growing economy of developing nations contributes to a good chunk of this growth.
It’s time to hop on the train before it’s too late.
Times are changing.
Southeast Asia has emerged as a hub for Web3 technology. Over 90% of the population there has a smartphone, rivaling even the richest countries such as the United States. Nigeria, Africa’s largest economy, has seen its percentage of smartphone users rise to over 50%.
However, there is little financial literacy in these nations. According to the World Bank, almost 2 billion bank account holders worldwide do not have access to online services. They are unable to secure steady, legal employment and struggle to save money in a safe, profitable way.
This is where DeFi protocols come in.
The newest protocols
In a cramped, humid office in the outskirts of Ho Chi Minh City was born a revolutionary vision for blockchain technology: play to earn.
Founded in 2018, Axie Infinity has exploded in popularity due to its integration of NFTs and an incentive to earn on its platform. The ability to play games with your NFTs and earn crypto
awards makes for an addicting yet profitable business model. Despite a $620 million heist in March 2022, Axie Infinity has paved the way for endless opportunities in the play to earn space.
In Thailand, OMG Network provides financial services for anyone with a mobile phone and internet access. By allowing users to globally transfer ETH and ERC20 tokens without restrictions, the platform connects traditional banking services to the blockchain. Those without online banking can now control their funds with ease.
State-run educational institutions and universities in the region, particularly Vietnam, are now storing all diplomas and certificates onto public blockchain archives to prevent fraudulent documentation. More government-back programs are yet to be announced.
Moving away from South East Asia, the potential of Crypto in Nigeria cannot be understated.
In Nigeria, Xend Finance is a pioneer in the DeFi space for developing nations. CEO and Co-founder Ugochukwu Aronu is no stranger to inflation. In January 2021 alone, Nigeria’s consumer price index (CPI) rose a staggering 16 percent, paving the way for a boom in DeFi popularity. By partnering with Nigerian credit unions, Xend Finance deposits bank assets into stablecoins with high APYs, providing users with basic financial rights such as savings and credit.
Not only do DeFi protocols help with personal finance, but also support large-scale businesses. In Nigeria, over 70 percent of households are involved in the ag industry. Tingo Mobile is democratizing access to mobile, technological and financial services. With over 500,000 transactions per day (totaling $8 million), these transactions cover the sale of produce (grain, corn, yam, beans, cassava, etc.), settlement, brokerage, escrow, and the organization of storage and logistics. The transactions are conducted with complete anonymity and all payments are sent and received from Tingo Mobile wallets to provide complete oversight.
A large contributing factor to Web3’s growing popularity in developing nations is due to a lack of legal framework when it comes to DeFi.
In August 2017, Vietnam’s then Prime Minister Nguyen Xuan Phuc issued Decision 1255, seeking the establishment of a legal framework to manage digital assets. However, talks have stalled and little to no progress has been made.
Rather, governments have taken important steps to promote free use of blockchain technology.
There is no intention of banning cryptocurrency trading. Governments treat tokens and NFTs as actual assets. As a result, SE Asia’s adoption of digital assets is one of the highest in the world by population. Almost 10% of the region’s population owns some sort of cryptocurrency or digital asset, and this trend will not be slowing down anytime soon.
Despite what the haters say, DeFi is here to stay.
While the brutal Crypto Winter decimated accounts in the United States and Europe, these losses have provided opportunities for developing nations. As blockchain technology further ingratiates into mainstream culture, a new legal framework is bound to be established. With new rounds of funding to support blockchain technology, we’re bound to see more revolutionary startups being born in SE Asia. There are tons of talent and opportunities waiting to be discovered.
We’ll be on the lookout for the newest tokens and protocols for y’all to take a look into. There’s some real sauce that you can still be early too. Big moon potential here.
Stay tuned :)
Velvet.Capital is Making Moves
With Velvet.Capital’s chain agnostic DeFi asset management protocol, anyone can create structured financial products like a pro- index funds, portfolios, and other structured financial products! Our decentralized protocol will grow into the one-stop DeFi platform of the future. Your investments can grow and you never need to give up custody of your assets.
Velvet.Capital can automate your entire crypto portfolio. With a few simple clicks you can purchase a crypto index (think S&P 500 for Crypto) gaining you exposure to a variety of tokens without needing to make all the individual trades. We also allow professional institutions to create their own indexes meaning more options for you (think ETFs for Crypto)
The diversified approach means you don’t stress about picking the “right” coin, allowing you to comfortably ride the wave without falling off. What’s more? You can start earning a monthly yield from your crypto holdings directly on the platform. Steady income to your wallet with none of the hassle. All from one account.
Velvet.Capital does the grunt work of vetting projects and yield farming protocols on your behalf. There’s no easier way to get started. You can capture the full upside of a crypto boom, collect monthly checks and minimize the risk of total wipeout due to diversified crypto indexes. We make it seamless to participate in the DeFi ecosystem, whether you’re a complete novice or an institutional trader.
Perhaps most importantly, we’re a completely decentralized project meaning we run on automated smart contracts (Just like your favorite protocols).
Join our waitlist today and be eligible for token airdrops (Free Tokens!), generous prizes, and early access to the future of crypto.
To make sure you get onboarded to our platform as we soft-launch, go to our website https://velvet.capital and click “get early access”. Then share your email and you’re ready to rock’n’roll! Then keep an eye on your inbox so you can be one of the first DeFi Pioneers in the world of Velvet.
Plus you can join our discord and be a part of building the next big thing in DeFi.
This is asset management for the Digital Age. This is DeFi asset management done right. This is Velvet.Capital.