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Tuesday, March 28, 2023

7.6 Million South Africans Are Crypto Investors, Social Media Main Source of Crypto-Related Information

7.6 Million South Africans Are Crypto Investors, Social Media Main Source of Crypto-Related Information – According to a new Kucoin study, about 22% of South Africa’s adult population between the ages of 18 and 60 (about 7.6 million people) are cryptocurrency investors.

According to the report, 65 percent of crypto investors believe that “crypto is the future of finance.” According to the report, a substantial percentage of users appear to prefer digital assets as their preferred method of saving for stable returns.

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According to the findings of the study, nearly three-quarters (72%) of South Africans get information about crypto projects that they choose to invest in via social media. Influencers and media personalities were discovered to be the key opinion leaders in the crypto promotion space, in addition to social media.

Also Read: Bank of Kyrgyzstan Issues Warning About Cryptocurrencies and Crypto Payments

Kucoin CEO Johnny Lyu commented about South Africans’ apparent preference for social media sites as their primary source of information:

“According to Statistics, there are 30 million social network users in South Africa, with that number expected to rise to 40 million by 2026.”

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The number of influencers, TikTok bloggers, and creators in the country is rapidly increasing, as social media has proven to be a simple and accessible source of money. Many Africans are being inspired by well-known bloggers of African descent, such as Khaby Lame, to spend more and more time on social media in pursuit of work, earnings, and dating.

Lyu also stated that social media has become the most efficient means of obtaining information for people. This is especially true now, when “users’ time is fragmented, and obtaining information fast and effectively has become a mainstream way of life,” according to him.

Meanwhile, according to the cryptocurrency exchange’s study, crypto investors in South Africa are largely “male and younger generations.” Men are reported to make up 60% of crypto investors, with 42% being between the ages of 18 and 30. Meanwhile, the study shows South Africa’s skewed wealth distribution and how low-income individuals appear to be using cryptocurrency to rectify the situation.

“The unequal distribution of wealth in the country is well reflected by the analysis’s findings, as 22 percent of crypto investors earn less than $5,000 a year, while 16 percent earn more than $50,000 during the same period,” according to the study report.

While the findings of the study suggest that interest in cryptocurrency is growing, regular reports of South African crypto investors losing money to scammers have drawn the attention of regulators, who have responded by either cracking down on crypto institutions or alerting the public against making any investment.

Also Read: South Korean Government Calls for Voluntary Regulations From Crypto Industry

Despite the regulators’ response, the study revealed that South African crypto investors “keep a positive attitude” toward cryptocurrencies since they are showing to be “capable of improving people’s financial situation.” Such cryptocurrency acceptance is having a positive impact on the local crypto market in general, which, in turn, helps in the removal of fraudulent individuals and players, according to the report.

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