In Africa, the number of entrepreneurs working on cryptocurrency and blockchain businesses is on the rise due to a growing global appetite for blockchain-based solutions and crypto-commerce. An example of this would be the story of Africa’s youngest blockchain entrepreneur, Elisha Owusu Akyaw.
Becoming a Blockchain Entrepreneur at a Young Age
Elisha is the founder and CEO of Token Media, a Ghana-based cryptocurrency marketing company. Founded in 2017, the company aims to assist new and existing blockchain projects to reach their target audience using global best practice marketing solutions.
Interestingly, most people would agree that Elisha does not fit the profile of your typical entrepreneur. The 16-year-old is looking to carve his own niche in advertising with a particular focus on blockchain projects, at a time when his peers are mostly concerned with school or other social activities. He first came across cryptocurrencies on TV, fell in love with the technology and decided the opportunities presented in the space were too good to be ignored.
About what developed his interest in cryptocurrencies he mentioned this in an interview with BitcoinAfrica.io,
“I got into the cryptocurrency space after I saw a news item about bitcoin on TV and then decided to check it out. The idea of financial freedom and an entire economy based on the blockchain appealed to my curiosity, which caused me to investigate about bitcoins and cryptocurrencies as a whole. After research, I then looked at how I could apply my skills in the field and later joined the DASH community and started the first DASH commercial blog.”
Establishing his Mark on Blockchain Advertising with Token Media
Elisha’s foray into digital currencies could not have been at a more opportune time when big players like Goldman Sachs and Google recognise the untapped potential of blockchain technology. Meanwhile, startups are developing other uses for blockchain technology to secure information from tampering and allow users to access the entire record of transactions.
Elisha identified the need for PR services for established companies as well as new market entrants. With this in mind, Token Media was conceived. He states his inspiration for starting the company was,
“I watched a lot of cryptocurrency related videos and I remember watching one that spoke about bringing businesses from other industries into the blockchain industry, which got me thinking about a PR solutions company. After the boom of ICO’s and the popularity of cryptocurrencies, the need for proper marketing services in the space has become very important which lead to the birth of Token Media. Our solutions are unique because we blend affordability and quality.”
Token Media offers a variety of services primarily in public relations, ICO marketing, and social media management. Under public relations the company creates, publishes and distributes press releases, working with notable partners such as BTC Manager, Merkle, and Hongico just to name a few. With ICO marketing, the core activities are public relations and investor relations. Social media management involves spreading the message about various blockchain projects on popular social media channels.
According to Elisha, the company which began operations in June last year has so far worked with several clients such as PIVX, Komodo, Local World Forwarder, and SmartCash. Token Media has helped raise over $40 million in token sales through its marketing services and has worked with cryptocurrencies with a combined market capitalisation of over $1 billion.
While this may seem impressive for a company less than a year old, for Elisha this is just the beginning,
“In the future Token Media aims to be more than a marketing solutions firm. We are working on new projects that include an initial coin offering startup platform, content distribution, and creation on the blockchain and a blockchain related content platform that integrates all media formats,” he said about his future plans.
Challenges Faced and Advice to Aspiring Entrepreneurs
However, a journey into entrepreneurship is not without its hiccups and blockchain businesses are no exception. For Elisha, a persistent problem has been the presence of few platforms in Africa with cryptocurrency integration which makes moving money around quite hectic. Until recently he couldn’t find a decent cryptocurrency exchange in Ghana that offered excellent services with reasonable fees.
With cryptocurrency adoption in the continent still at its infancy stage, most Africans have to contend with international peer-to-peer exchanges like Localbitcoins and Remitano to buy and sell cryptocurrencies. While the exchanges support millions of dollars in trades every day, users are often faced with above market rate prices when buying bitcoin and other digital currencies. Lately, though, we are seeing more localised exchanges coming up across the continent that supports local currencies.
However, the biggest challenge according to Elisha has been unpredictable nature of market regulators. He says,
“Another problem that is getting bigger is the silence on the part of most governments on the continent on the regulation of cryptocurrencies. Regulators on the content seem not to understand the fundamental concepts of blockchain technology and may take rushed decisions that will hamper the growth of the blockchain industry in Africa. As an entrepreneur, it makes it hard for me to plan with this high level of uncertainty at play.”
The reality is the legal status of cryptocurrencies remains undefined in most African countries with regulators regularly sounding warnings against its use. The lack of a policy framework pertaining to digital currencies creates an environment of uncertainty for blockchain enterprises and hampers digital currency innovation across the continent. Hopefully, African governments which are more receptive towards blockchain technologies will involve stakeholders like Elisha in coming up with structures that can assimilate cryptocurrencies into local ecosystems.
For now, the Accra-based entrepreneur has split his time between growing Token Media and his studies. His advice to other young aspiring African cryptocurrency entrepreneurs is:
”There is a lot to be done in the blockchain space in Africa. Identify the problems around you, fix the problem and you will have a winning project or product in your hands. Let’s all work together to bridge the gaps on the continent, educate the masses and help the continent grow.”
Retired NBA Player Allegedly Scammed Ghanaian Company Out of $825,000 in Bitcoin
Retired NBA player, Isaac Edward Austin, has allegedly scammed a Ghanaian Company out of $825,000 in bitcoin (BTC). The money was reportedly acquired with the promise of investing it in a bitcoin automated trading programme.
Bitcoin Investment Scam
Through the Isaac Edward Austin (IEA) and Tudor Trust, Austin reportedly masqueraded as a trustee with the ability to help a Ghanaian company make a profit on a bitcoin investment. The two parties signed a contract on July 3, 2019. This contract is among other documents that have been shared on mynewsgh.com indicating the scam took place.
The company sent to a bitcoin investment at a strike price of $11,000 per bitcoin, totaling to $825,000, to Austin expecting to receive back the original investment plus profits. However, Austin failed to make the payment at the close of trading as per the agreement.
A victim of Austin’s scam shared his experience as follows: “He will take your BTC and you will never get your investment back or your returns. On the day of payment, he will tell you story after story filled with lies of issues why the BTC could not be delivered on the day of payment. From him having a heart attack, to the coin being sent to the wrong wallet, to him being in a queue at the bank, to him waiting for the trade to conclude, to the funds being held by the bank. Week after week after week of unresolved issues even when he has confirmed the day before that all is set 1000 percent to deliver and conclude the transaction. He is a fraudster of the highest order. Stay away from him. We have all the proof – contracts, letters, and messages.”
One of the other documents mynewsgh.com obtained is a letter sent to Austin notifying him of his failure to meet the agreed terms of the contract. The Ghanaian company expected their money back on the same day they signed the contract with Austin. The funds expected should have been 75 BTC going for a strike price of $11,000.
In the letter, the company gave Austin 48 hours to pay them their money – failure to which they were going to take legal action.
Is the Scammer an Imposter?
According to the documents shared on Ghana Web, the bitcoin scammer’s date of birth and height is similar to the former NBA player, Isaac Edward “Ike” Austin as indicated on Wikipedia. So, could this be a case of a retired basketball player turning into a scammer or is someone impersonating him? The answer to this question is unclear.
This LinkedIn profile of an Isaac Austin, who has been the Finance Director and Trustee of Tudor Trust and Finance Society LLC since June 2012, does not seem authentic. Although this profile has some similarities to the former NBA player’s personal information as written on Wikipedia, the years he attended Arizona State do not coincide.
Furthermore, the profile on LinkedIn says Isaac Austin took a Bachelor’s Degree in Liberal Arts and Sciences for one year which is not the usual study period for a degree course. There is also no mention of the former NBA player being a trustee of IEA and Tudor Trust.
The upturn of the crypto market experienced in mid-2019 appears to have spurred scammers into action. This scam comes after another bitcoin investment deal in Nairobi went wrong between December 2018 and May 2019.
That said, these scam stories are a lesson to potential bitcoin investors that they are better off managing their own investments as opposed to handing funds to someone to manage them. If the Ghanaian company had carried out thorough research, perhaps they would have noticed the obvious red flags.
The Golix Controversy: Has the African Exchange “Exit Scammed” Users And Investors?
Prior to May 2018, Zimbabwe-based bitcoin exchange Golix was bullish about its future prospects. The startup claimed it had raised $32 million from a token sale and had plans to set up operations in several other African countries. However, more than a year later, the digital asset exchange has had a reversal of fortunes and, after its forced shutdown in Zimbabwe, some of Golix’s former clients are struggling to get their funds reimbursed despite promises and frantic efforts to recover these.
Former Golix users now point to possible embezzlement of funds by Golix executives while one investor in the startup blames the hostile operating environment as the reason for the company’s general failure.
Tawanda Kembo was the chief executive officer (CEO) of Golix when it was shut down in Zimbabwe. Bitcoin Africa reached out to him to get his side of the story but he had not responded to our questions at the time of publishing.
However, Bitcoin Africa still managed to contact Taurai Chinyamakubvu, an individual who says he was an investor in the company. Chinyamakubvu claimed he is not aware if client funds had been reimbursed or not since he was not involved in the day to day affairs of the crypto startup.
“On funds, you can check with the CEO, he was doing the day to day stuff. I was just an investor,” Chinyamakubvu pushed back when asked if they had recovered client funds that were reportedly locked in banks.
In May 2018, Zimbabwe’s central bank issued a directive that forbade financial institutions from dealing with crypto exchanges. According to Golix, this led to banks blocking access to client funds and the company from using the financial system.
Central Bank Defiance And Crypto Adoption
When asked why Golix had not resumed operations following a High Court ruling that set aside the central bank order, Chinyamakubvu suggested that Golix’s Zimbabwe operations remain hamstrung by the central bank’s reluctance to lift the order.
“They (Reserve Bank of Zimbabwe) did not lift the order they sent to banks. So no bank wants to defy a regulator. But that said, you muddy the water once, that’s enough to change its colour for a while,” he stated.
Chinyamakubvu is convinced that the central bank’s apparent defiance of a court ruling continues to hinder the growth of the crypto space in a country that should be embracing privately-issued cryptocurrencies.
Zimbabwe has been plagued by hyperinflation for the past two decades, which is spurred on by a volatile fiat currency. Critics point to the central bank’s penchant for unrestrained printing of money as the main cause of the country’s currency troubles.
The Golix investor called the central bank’s decision to shut down the crypto exchange ‘retrogressive’.
Ironically, the Reserve Bank of Zimbabwe recently announced the setting up of a committee to study financial technologies such as bitcoin. The regulator now says it wants to come up with what it calls a “National Fintech Strategy.”
Disappeared Client Funds
Bitcoin Africa also reached out to former Golix clients as it tried to establish what happened with their funds. Some did not respond but a few did – although they requested anonymity. One lady, in particular, expressed exasperation with the way Golix has been handling the issue.
“I do not know about others but I still have not been reimbursed. Tawanda (CEO of Golix) has made several promises to settle but nothing has happened,” claimed the lady who preferred to remain anonymous.
She further explained that currently there is nothing noteworthy happening but promised to reveal more details as and when they become known.
Kembo on the Run?
Following the central bank decision to stifle cryptocurrency trading, some crypto traders have gone on to create informal trading platforms using social media networks like Whatsapp, Telegram, and Facebook.
Bitcoin Africa was also able to get access to one such Whatsapp chat group feed wherein clients are discussing strategies of recovering funds from Golix. In a discussion that occurred in July 2019, one member of the group asks fellow members to furnish her with information that includes Kembo’s personal identification number or even a vehicle registration number. This could then be used to help a hired tracing agent to locate him.
It is apparent from the discussions that Kembo has made several promises – including re-payment plans – to reimburse but nothing has happened to date. Adding intrigue to the controversy, this client claims Tawanda told them he had lost the key to the cold storage wallet. Thus, he could not access the bitcoin.
Keys to a crypto wallet are essentially a passcode that grants access to funds and without them, the funds are lost and cannot be recovered.
In the meantime, another post on the same thread suggests that Chinyamakubvu was being disingenuous when he expressed ignorance about the status of client funds. In the post, another member insists that prior to the central bank order, Golix was asked to remove all funds before accounts were closed.
The anonymous member was referring to a part of the central bank circular to banks which states the following:
“Exit any existing relationships with virtual currency exchanges within sixty days of the date of this Circular and proceed to liquidate and restitute existing account balances.”
This central bank circular was issued on May 11, 2018, and Golix seemingly had enough time to exit from banks as well as to reimburse clients.
No Consumer Protection
The anonymous member suggests that since this did not happen, the issue should now be treated as a criminal case.
It is apparent from the rest of the discussion that members were aware of the risks involved with crypto businesses. The central bank had warned the public of risks of dealing with cryptocurrencies and associated businesses prior to Golix’s demise.
Zimbabwe does not have consumer protection laws that specifically deal cryptocurrencies and those dealing with such digital currencies do so at own risk, a point clearly articulated by the central bank circular. Perhaps it is with this in mind that some Golix clients are now pursuing fraud charges against Golix executives.
Lack of legal protection is another factor inhibiting the widespread adoption of cryptocurrencies but that may yet change as the central bank is now having a change of heart.
Bitcoin Africa will continue to follow the events surrounding the alleged exit scam of Golix and update our readers when new information surfaces.
Alleged Con Man Taken to Court in Kenya Over Fake Bitcoin Deal
A man is reportedly facing charges in a Nairobi court after allegedly swindling an accountant out of 375,000 Kenyan shillings (KES) in a fake bitcoin deal. The accused, Patrick Kamau, allegedly committed the fraud on several dates between December 2018 and May 2019.
Bitcoin Investment Deal Goes Sour
Kamau reportedly promised to open a forex trading account for the complainant and invest in forex bitcoin through BNB Forex. Benjamin Mugoya entered into the deal with the hope of making crypto trading profits after a friend introduced him to Kamau. The accused posed as a sales representative for BNB Forex in Kenya.
To open the forex trading account, Kamau asked Mugoya to wire KES400,000 to his bank account. However, after receiving a total payment of KES375,000 on May 22, Kamau switched off his phone.
In addition to this payment, Mugoya had sent Kamau KES50,000 in two installments in December 2018 and January 2019.
This is not the first bitcoin-related case that has been heard in a Nairobi court. In 2017, three bitcoin traders were charged with allegedly stealing KES10.2 million from I&M bank and Mpesa. The case involved a purchase of bitcoin from the traders using stolen money.
The case against Kamau has been scheduled for 22 February 2020. The accused was released on a cash bail of KES150,000 or a bond of KES200,000.
Unregulated Crypto Space
Mugoya could be one of many victims that have fallen prey to fake bitcoin investments despite the Central Bank of Kenya’s warning against investing in bitcoin.
The Bank’s Governor, Patrick Njoroge, has been vocal about the risks associated with cryptocurrencies such as fraud. In 2018, the Governor ordered Kenyan banks to refrain from making crypto transactions or engaging with entities transacting in virtual currencies.
The unregulated crypto space in Kenya means that victims of crypto fraud are unprotected, thereby, preventing them from recovering their funds. However, with sufficient evidence, Mugoya could obtain justice from the Kenyan court system.
Places in Africa Where You Can Find a Bitcoin ATM
Bitcoin Loophole – Another Crypto Scam to Avoid
5 Ways to Earn Free Bitcoin Cash (BCH)
Top 5 Best Bitcoin Apps That Enable You To Earn Cryptocurrency
eatBCH – Bitcoin Cash Community Has Raised Over $10,000 to Feed Vulnerable South Sudanese
What is Particl and Why Should You Know About It? – An Interview with “Crypto Ramble”
The Top 5 African Countries That Are Embracing Bitcoin
7 African Blockchain Startups to Watch in 2019
Blockchain Game Gods Unchained Launches Beta Version
Mauritius to Receive World’s First Digital Asset Custody Regulatory Framework
Press Releases1 year ago
Humaniq Doubles Number of Nations Where it Brings Global Unbanked Better Options
Altcoins1 year ago
Humaniq Global Challenge Winners Go To Kenya
Altcoins1 year ago
Humaniq Brings Financial Inclusion to Five More Countries in Africa
Press Releases1 year ago
Humaniq wants YOU for Hack.Summit (Blockchain)
Bitcoin9 months ago
Places in Africa Where You Can Find a Bitcoin ATM
Bitcoin2 years ago
Kenyans Are Among Highest Bitcoin Holders Per Capita According to Citi Report
Altcoins2 years ago
5 Ways to Earn Passive Income with Cryptocurrencies
Blockchain Technology2 years ago
Nigerian Blockchain Startup SureRemit Raises $7 Million in Biggest African ICO To Date