Davido Starting Bitcoin Exchange Company: What It Means For Bitcoin In Nigeria

Nigerian music power house, Davido, has revealed plans to start a bitcoin trading company. The singer revealed in a tweet, that he is “thinking of starting a bitcoin trading company”. 

Prior to this tweet, Davido had announced his partnership with Bitsika, his very first fintech partnership in October 2020. Since the partnership, the company has been experiencing immense growth, seeing a 4000% increase in transaction volume. 

While a lot of Davido’s fans supported him, most were either lobbying for job roles, or giving him options for a company name. Some of his fans equally suggested that as opposed to creating a blockchain trading company, the singer should start his own currency and create a dedicated exchange. They also suggested the creation of an exchange that required little or no KYC. 

Meanwhile, some of his more crypto-inclined fans advised Davido to be careful due to the fact that regulations could make running an exchange difficult. 

Davido is no stranger to running businesses. His recorded label Davido Music Worldwide (DMW), is arguably one of the most successful record labels on the continent. Having recently invested in motorsports, Davido might be making business hits just as much as he makes hit songs.

Davido’s success with fintech 

It won’t be Davido’s first time dealing with fintech if he starts a bitcoin exchange. 

His partnership with Bitsika  last year has been yielding positive results. Some of the metrics the fintech start up hit were unprecedented. 

Bitsika was launched in 2018 by Samuel Boahen. The platform serves as a wallet for different kinds of currencies such as; cedis, naira, dollar and CFA currencies. It can be used to send and receive money; also serving as a crypto exchange platform.

Bitsika allows users to deposit money in one currency and withdraw to another. With very low fees attached to such financial services, the company is fast becoming a fintech haven for many. 

However, Davido’s partnership has brought monumental development to the company.

According to tweets by the CEO, Atsu Davoh, the company recorded significant growth in revenue, usage and transaction processed. The company claims to have processed about $40 million in transaction volume. In the year before Davido was signed to be an ambassador and stakeholder, the startup processed $974,864 in transaction. 

Africa’s next Cash App?

Some of Cash App’s success can be attributed to the influence hip-hop has in it. Referred to as “your rapper’s favorite smartphone-based payments and money transfer service” by Kori Hale, CEO CultureBanx, Cash App is one app that is popular among hip-hop stars and fans. 

According to CultureBanx, hip-hop influencers and fans played a major role in growing Cash App’s users from 7 million in 2017 to 30 million in 2020. 

Music has definitely had an unprecedented effect on the app’s growth. In Nigeria there’s a popular hit song titled Cash App by Nigerian rapper, Bella Shmurda.

When it comes to music in Africa Davido is a strong force to reckon with. With jaw dropping numbers on social media alone Davido’s proposed bitcoin exchange could lead to massive crypto adoption and a lot of users for the exchange. 

Just a few hours after his partnership with Bitsika was announced the 10 new server’s created for the app crashed. The team at Bitsika anticipated a rush and created 10 new servers but apparently the numbers Davido commanded still crashed the new servers.

Implications for BTC in Nigeria and Africa

Davido is no Elon Musk, but when celebrities talk about crypto, it has an effect. These effects are seen mostly in terms of adoption and in terms of value of a particular currency.

While bitcoin might be a solution to the shortcomings of traditional finance, it is becoming more of an identity. According to Finn Breton, professor of science and technology at University of California, “The culture around bitcoin is part of the appeal.” As celebrities with strong influence continue to talk about bitcoin, they encourage a large portion of the youth population to key into  the crypto ecosystem. 

As massive youth influencers such as Davido continue to endorse cryptocurrencies, buying it, therefore, becomes buying into a culture. 

Mark Cuban also told Forbes that bitcoin is more of a religion, citing the use of jargons exclusive to the crypto community. 

With millions of followers on social media, Davido’s gradual endorsement of bitcoin might spark a gradual wave of crypto newbies, thereby, propelling crypto adoption in Africa.

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