Criticism Levied by Senator Ihenyen Toward Nigerian Blockchain Sector Over Perceived Lack of Innovation Amidst Exuberance
In the ever-evolving world of cryptocurrency, two contrasting trends have emerged: the surge of memecoins and the continued development of blockchain technology. This article explores these trends, their implications, and their impact on Nigeria and the wider world.
Recently, Nigeria's Securities Exchange Commission issued a statement cautioning that memecoins lack fundamental value. This viewpoint is supported by the memecoin trend, which has been marred by numerous scam coins, casting a shadow over crypto's disruptive potential. American billionaire Warren Buffett and JPMorgan Chase & Co CEO Jamie Dimon have also expressed similar sentiments, describing Bitcoin as "rat poison squared" and a "fraud" respectively.
One area where blockchain technology has shown promise is in elections. West Virginia, US, has used a blockchain-based mobile voting application for citizens abroad, and US presidential candidate Andrew Yang proposed implementing blockchain-based mobile voting in 2019. However, the use of blockchain for elections has faced criticism, with concerns about phishing scams and foreign interference.
In Nigeria, the decision to use blockchain for elections rests with politicians, who may benefit from the lack of free and fair elections. Current organizations working on blockchain-based voting solutions in Nigeria include the Nigerian Blockchain Technology Association (NBTA), various tech startups like Horizon Blockchain Games, and international partners collaborating with the Independent National Electoral Commission (INEC).
Chimezie Chuta, Founder of Blockchain Nigeria User Group (BNUG), suggests that blockchain could be tested in lower-level elections before being implemented on a national scale. Senator Ihenyen, Lead Partner and Head of Blockchain at Infusion Lawyers, agrees, stating that the focus of Nigeria's blockchain and crypto space has been on hype rather than originality.
Meanwhile, memecoins like $DAVIDO, launched by afrobeat star David Adeleke, have become a popular introduction to the crypto world for many people. Designed to be affordable, they cater to the fear of missing out (FOMO). However, the Commission has warned the public about the risks of investing in such tokens. Ihenyen suggests that the notion of people becoming overnight millionaires through memecoins should be removed, and those launching memecoins should be open and transparent about the associated risks.
It is clear that the memecoin trend, while providing a gateway for newcomers, also carries significant risks. If this trend fades, perhaps fundamental projects with real use cases will gain the world's attention. One such project is IBM's Blockchain Transparent Supply, which helps pharmaceutical companies ensure product authenticity and decrease fraud through an immutable record of events.
In conclusion, while memecoins have their place in introducing people to the crypto world, they also pose risks. On the other hand, blockchain technology, when used responsibly and ethically, has the potential to revolutionize various sectors, including elections. As these trends continue to evolve, it is crucial for regulators, developers, and the public to remain vigilant and informed.
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