The news hit like a gut punch. Another hack. Another million-dollar heist. This wasn't just any hack. This was the Pepe NFT hack, and it landed squarely on the backs of some of the most vulnerable people in the Web3 space: young Africans striving for financial freedom.

From all around, we see the technocratic utopia offered by Web3. It howls with the siren call of a decentralized, democratized future, where anyone, anywhere—all of us—can participate in the global economy. The Pepe hack reveals a darker reality: a Wild West where security is an afterthought, and the most vulnerable are left to fend for themselves. North Korean operatives posing as IT staff? It may sound like a bad Jerry Bruckheimer flick, but that’s the unfortunate nature of the double-edged sword threatening this fledgling industry.

Web3's Empty Promises Ring Hollow

For millions of young Africans, Web3 is more than the latest fad innovation, it is a lifeline. In countries plagued by unemployment, corruption, and limited access to traditional financial services, DeFi and NFTs offer a tantalizing glimpse of economic empowerment. I have exchanged words with too many of the young people who poured their savings, hopes, and futures into these projects. They were hopeful, perhaps naively so, for fairness and a level playing field.

Then, boom. A $310,000 loss at Chainsaw. A $680,000 loss at Favrr. Dreams shattered. Savings wiped out. Trust betrayed.

Where was the support? Where were the security protocols? Where was the accountability? The absence of something more than silence from Chainsaw and the toothless response from Matt Furie say more than words ever could. It's as if the people building this future have forgotten who they're building it for.

This isn’t only a dollar value of lost money, lost faith. Instead, they come to a crushing realization. That “decentralized” future they were sold on is, in many other ways, just as extractive and inequitable as the systems they sought to flee. It’s like offering someone a life raft, then stabbing holes in it before they even start to swim.

Echoes of Colonialism in Crypto's Failures

Think about it. For hundreds of years, the continent of Africa has been in the gun sights of exploiters. Resources plundered, communities disrupted, and futures stolen. But in many respects, isn’t Web3 digital colonialism 2.0? It starts to look a lot more like wealth is being extracted to benefit the privileged few while the marginalized communities are carrying the high risk.

The Pepe hack isn’t a random, isolated incident – it’s a reflection of a much deeper, more serious issue. African crypto users have their own set of challenges. This state of affairs has resulted from wilful disregard, apathy, and an utter lack of awareness. Because of entities’ size and scope, they do not have the infrastructure, education, or resources to adequately protect against these complex attacks. We're essentially setting them up to fail.

These factors converge to form a perfect storm making African crypto users extremely susceptible to scams, hacks and exploitation.

  • Limited Access: Reliable internet access is still a luxury in many parts of Africa, making it difficult to stay informed about security threats.
  • Low Financial Literacy: Many new users are unfamiliar with the intricacies of blockchain technology and the risks involved.
  • Lack of Legal Recourse: In many African countries, the legal framework for dealing with crypto-related crimes is still in its infancy.

The Web3 community and African governments need to do more. This isn’t just about protecting investors. It’s more than that; it’s about protecting the future of a technology that’s able to change lives.

Time for Action: Rebuilding Trust, Security

Here's what needs to happen, and it needs to happen now:

The Pepe hack is a wake-up call. Don’t forget, the potential of Web3 is based on its security and backing. Without the concrete commitment to back that promise, it rings empty. We cannot allow Africa to become the proving ground for our shortcomings. Together, we must create a more inclusive, equitable, safe, and accessible Web3 for all—no matter their location. Failure to do so would only repeat the mistakes of the past. This isn’t only true with crypto — it’s true with justice.

  1. Prioritize Security Awareness: Launch widespread educational campaigns to teach African crypto users about security best practices, including how to spot scams, protect their wallets, and report suspicious activity.
  2. Invest in Cybersecurity Infrastructure: African governments need to invest in cybersecurity infrastructure to track and prosecute crypto criminals. They should also collaborate with international law enforcement agencies to bring perpetrators to justice.
  3. Demand Accountability: Web3 projects must be held accountable for the security of their platforms. This means implementing robust security protocols, conducting thorough background checks on employees, and providing adequate support to users who have been affected by hacks.
  4. Support Local Initiatives: Invest in African-led Web3 initiatives that are focused on building secure and inclusive ecosystems. These initiatives are best positioned to understand the unique needs of the African market and develop solutions that are tailored to local conditions.
  5. Matt Furie and Chainsaw: It's time to step up and offer real solutions. A simple acknowledgement isn't enough. What will you do to compensate those affected and prevent this from happening again?

The Pepe hack is a wake-up call. It's a reminder that the promise of Web3 is only as good as the security and support that underpin it. We can't afford to let Africa be the testing ground for our failures. We need to build a Web3 that is truly inclusive, equitable, and secure for everyone, everywhere. Otherwise, we risk repeating the mistakes of the past. This isn't just about crypto; it's about justice.