LIBRA scandal brings Nigerian meme coin plans to light

Key Takeaways

• Kelsier Ventures is planning a Nigerian expansion despite the LIBRA memecoin scandal.
• The scandal led to a loss of $4 billion due to the withdrawal of support from Argentina's President.

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Kelsier Ventures, the firm at the center of Argentina’s LIBRA meme coin scandal, has been in discussions with Nigerian officials about launching a similar project on the Solana blockchain, The Big Whale reported .

The firm’s Nigerian expansion plans emerge after the LIBRA controversy, which resulted in estimated losses of $4 billion affecting 40,000 investors.

While there is no indication that Nigerian President Bola Tinubu was directly involved, the report informs that members of his team were engaged in the discussions.

Regarding the LIBRA affair, Hayden Davis, CEO of Kelsier Ventures, declared that the firm maintains control over the funds and denies any wrongdoing, claiming that Milei’s team unexpectedly changed their stance on the project.

To address the situation, the firm has proposed using a $100 million control fund to repurchase and burn LIBRA tokens.

However, its plans to expand into Nigeria face significant obstacles, given the country’s history with crypto-related fraud and its regulatory environment.

In February 2021, the Central Bank of Nigeria restricted banks from processing crypto transactions, while the Economic and Financial Crimes Commission has increased efforts to combat crypto-related cybercrime.

In October of that year, Nigeria launched eNaira, the first African CBDC .

As of March 2024, the Central Bank teamed up with Gluwa to drive the adoption of the eNaira using blockchain technology for financial transactions and credit assessments.

Last September, the country’s Economic and Financial Crimes Commission escalated its crackdown on crypto traders by freezing over 1,100 bank accounts amid ongoing economic challenges.

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