Is a meme coin ETF the best thing for Africa at this moment?

When the CBOE filed for the Canary PENGU ETF, chicken on the crypto community. This ETF puts a large chunk of its holdings into a Solana-based meme coin and Pudgy Penguin NFTs. We saw the headlines: "First Meme Coin ETF Incoming!" and "Solana ETF on the Horizon?" Here's what many are missing: What does this actually mean for Africa?

Hope or Hype? Africa's Crypto Gamble

Let’s be real. To say that traditional finance has gone out of its way to exclude the typical African would be an understatement. Their banks are often miles away, interest rates are predatory and their local investment opportunities are limited. With its promise of democratization and financial inclusion, crypto has provided a brief moment of hope. There are incredible stories all over of people using crypto to work around corrupt systems. Through this, they’re reaching towards the global marketplace and creating a greater future for their families and for themselves.

Then comes the PENGU ETF. All of a sudden this seems like a possible pathway for much easier access to crypto – is it too easy?

The allure is obvious: The possibility of quick riches, the chance to participate in something new and exciting. PENGU’s price spiked 2% on the announcement – an exciting preview of what might come. The fully diluted market cap is equally impressive at $745 million. With average daily trading volume of $124 million, it should be evident by now that this is a well-run, long-term operation. Let's not get carried away.

Remember that meme coins are mostly just hype speculated on by social media trends. In fact, they can pump more quickly than they can dump, taking unsuspecting investors’ money and leaving them holding only digital dust.

Now, picture that same entrepreneur in Nairobi, unable to get a loan for the next big step in their thriving business. They’ve seen the headlines around crypto and the promise of massive paydays. All of a sudden, they see the PENGU ETF as their path to prosperity! Then, they invest all their hard-earned savings into this thing, only to watch the value disappear into thin air as the meme coin eventually loses its luster.

What About the Forgotten Voices?

It’s easy to lose sight of the human element behind this number crunching. This is not just about numbers, this is about real people, real dreams, and real risks.

We need to ask ourselves: Are we truly empowering African investors by offering them access to highly volatile meme coins? Or are we just creating a path to failure and, worse, maybe even deepening current inequities.

The Western-centric crypto industry tends to miss the fact that Africa has different, but equally unique challenges and opportunities. We must do our utmost to make sure that African voices are present in the policy debates around the regulation of crypto assets. The SEC must consider the impact of its policy choices on developing nations. It must do more to look outside the narrow interests of US institutional investors.

Here's the truth: The PENGU ETF could be a gateway to meme coin millions for some. For most of them, it would be an empty promise or even fool’s gold.

Control Your Destiny, Africa

It really just boils down to education, accountability, and a little common sense skepticism.

I firmly believe this crypto revolution can change the trajectory of Africa’s economy and provide new opportunities for its people. It really can transform how we travel, but it’s in our hands to make sure that potential is achieved, and that we do so responsibly and equitably. With the PENGU ETF, we are once again challenged. It challenges us to cut through the hype and recognize the risks, seeking to always put the most vulnerable first.

  • Do your own research. Don't just blindly follow the hype. Understand the risks involved before investing a single penny.
  • Diversify your portfolio. Don't put all your eggs in one basket, especially if that basket is filled with meme coins.
  • Demand responsible regulation. Call on African regulators to create a clear and supportive regulatory framework for crypto that protects investors without stifling innovation.
  • Support local initiatives. Invest in African-led crypto projects that are addressing real-world problems and building sustainable solutions.

Avoid the temptation of short-cutting your way to success. Africa's crypto future is in your hands. Invest wisely.

Don't let the lure of quick riches blind you to the bigger picture. Africa's crypto future is in your hands. Invest wisely.