Crypto Dip Sent Panic Across Nigeria as Traders Rally for “HODL!”
Most Nigerian crypto traders are licking their wounds after the major crypto crash of the week, and they are not doing so in silence as every time they catch a glimpse of the graphs their private pains are exacerbated to public moans. From – Tron, Doge, Litecoin and Ripple. It has been bleeding red all through as some traders described their experience as a tsunami which burned the fingers of thousands of traders across the length and breadth of one of the world’s largest crypto trading countries, Nigeria.
While Bitcoin was the hardest hit as the value crashed as low as $32,000 from a previous high of $65,000 in mid April. But the wave has shaken BNB, Binance’s cryptocurrency, as well as Ethereum, the currency of the NFT world. Sources say that Bitnob, a Lagos-based cryptocurrency exchange, had a request for Risevest, a stock and real estate investment startup.
Even though Nigerians are thick skinned and joke about every type of misfortune, the pains of the crypto dip was quite visibly felt as it was the biggest trending issue on Twitter, Facebook and even Instagram where a large proportion of traders reside, literally.
For most traders, all the gains made on Bitcoin since early this year have been wiped out in a day.
Many link the very swift rise in crypto value to statements credited to Elon Musk and other major corporate titans whose positive comments on crypto helped drive the value, especially Dogecoin, whose value rose an incredible 12,000% between January and the first week of May. $1,000 (₦380,000) worth of Doge in January was worth $121,000 (₦46 million) just a few weeks ago. But like the fury of a woman scorned who hates with same zeal she loved, Musk’s effect on crypto also drove a wedge into the hearts of traders as his tweets 49 days after he said Tesla will not be accepting Bitcoin for car payments came tumbling with his tweets over the energy demands of mining crypto.
Musk had tweeted that because Bitcoin takes a lot of energy to mine, it would be unfitting for a company that sells electric cars to directly encourage activities that potentially harm the environment. A statement that drew a lot of condemnations and even suggestions of ulterior motives as it led to the Cryptoverse.
A section of Nigerian traders suspect foul play, and also warn others that what happened was all planned with the aim to force crypto whales to sell off en masse. After the dip, they will re-buy and make gains, some of them opine.
There is no evidence at the moment of a coordinated sell-off by BTC holders. Observers and long-time holders believe the cryptocurrency market is merely experiencing a correction, a tendency familiar with veteran stock market traders.
According to some analysts, “Crypto markets were always volatile. So honestly it’s not fun, but it’s not unexpected. Long term, I’m bullish. So it doesn’t really matter what happens today.”
That feeling – that this dip is not abnormal or catastrophic – has helped keep heads cool even as crypto exchange apps continue to look bloody. Despite the crash in value, holders only lose when they sell off their assets at the current prices.
Nigerians, well known for their optimism seem to believe that there would soon be a rebound as they are whispering that the only thing to do at present is HODL, an acronym popular which means Hold On for Dear Life.