Former CBN Deputy Governor Says Cryptocurrency Remains Risk, But Not Different From Stock Market
- Kingsley Moghalu said cryptocurrency crash is normal and no different from stock exchanges
- The former CBN deputy governor said cryptocurrency is a risk and can still be bought
- Moghalu stated that the digital currency serves as protection for Nigerians against inflation and devaluation
The former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, said the losses recorded in cryptocurrency is like every other financial assets.
Moghalu said cryptocurrency is always a risk, and the decline being experienced in the crypto market is not unusual as shares in the capital markets also share the same fate.
What happened to cryptocurrency?
Cryptocurrency has been struggling to regain its bullish run which it recorded between second half of last year and first quarter of this year. The bullish run had been stopped by Tesla founder, Elon Musk.
Bitcoin was trading over $55,000 when Musk tweeted that his automobile company would be dumping bitcoin for another less-energy consuming cryptocurrency.
This tweet sent the price of bitcoin crashing, as crypto community went into panic mood, with large and small holders selling off their coins to protect their profit between last year and Q1 2021.
Cryptocurrency remains an investment option
According to Moghalu, the decline in the digital asset might be the best signal for interested investors to buy - although he stated that he wasn't giving investment advice.
Source: Twitter
The investment banker said with crypto's risk, Nigerians are still using it as a protection against inflation and naira devaluation. He made this comment on his Twitter page.
In his words, Moghalu said:
"Cryptocurrency is taking a beating in financial markets. This is the case for most financial assets such as company shares on stock exchanges. It’s always a risk, but in Nigeria it remains a hedge against inflation and naira devaluation for many. This dip may be time to buy."
Meanwhile, Legit.ng had previously reported that another African company, Chipper Cash, has grown into a unicorn, which is the level for a startup worth over a billion-dollar.
The company was co-founded by Ham Serunjogi and Maijid Moujaled, both from Uganda and Ghana respectively. Their company became a unicorn after raising $100 million.
In total, Chipper Cash has raised a total $152.2 million through fundraising. And together with the company's earnings, Chipper Cash valuation has risen to between $1 billion and $2 billion.
Source: Legit.ng
