At the point where Bitmama; a Nigerian crypto startup serving multiple African countries, announced a further USD 2 M in pre-seed last September, its status as a centralised exchange enabling buying, selling, and swapping of dozens of cryptocurrencies was front and centre.
Its raise was the latest in a category comprising custody and exchange platforms noticeably favoured in recent years by investors keen to take stakes in businesses building for the rising crypto wave in Africa. Bitmama would however come to readjust its posture not long after following turmoil that rocked the industry and a lull in the tech funding landscape amid a downturn.
“The run of scammy crypto projects have caused a government clampdown unlike anything I’ve ever seen since I got involved with the industry in the ICO years of 2017/18,” Michael Kimani, founder of the Blockchain Association of Kenya, told WT. “It could have the effect of cleaning up the industry but maybe also fork it such that anti-government crypto hardliners break out and double down.”
As the crypto industry endures a torrid period marked by a market crash that muffled the frenzy, as well as heightened regulatory scrutiny in the wake of some damning fraud scandals, crypto firms are increasingly exploring life beyond the ‘to-the-moon coin rush’ that was the biggest draw.
“The state of play for crypto startups in Africa is currently one of growth and innovation, despite the recent bear market. It is very present – noise has just been eliminated,” said Samuel Akpan, who leads global public relations efforts at Consensys, a leading blockchain software developer.
And Bitmama, like a handful of others, is among local crypto startups undergoing something of a shift as the lure of a possible overnight jackpot—by retail-trading unregulated crypto-coins and effectively gambling on meme tokens—wears thin.
