The akoin cryptocurrency, created by famous singer and philanthropist Akon, has started trading on a global crypto exchange. It is also being launched as a means of payment in a tech city in Kenya as a pilot for Akon City, the $6 billion futuristic city that is being built in Senegal.
Akon, whose full name is Aliaume Damala Badara Akon Thiam had invested in Bitcoin in 2014 and had announced potential plans for the Akon City last year. He also had a land agreement with the Senegalese government earlier this year. However, the government is neither giving funds for the city nor it has a stake in the coin, Karas said. 10 per cent of the total float of the cryptocurrency Akoin will be issued via a public sale in the beginning. This amount may change as per the demand while another 10 per cent is to be held by executives, advisers and directors of the company, as per a white paper published. Apart from Akon, Karas, the third founder of Akoin is Lynn Liss who also serves as chief operating officer. The founders are subject to a six-month lockup period. “We’re in this for the long-run,” Karas said.
The Akoin Ecosystem
Akon is hoping the alternative models proposed by Akon City will help Senegal, a country dealing with mass protests in the wake of an economic crisis, tackle poverty and youth unemployment. Construction on the project is expected to start this year, and is expected to cost around $6 billion, pooled between Akon and outside investors. The singer this week also announced plans to build a “sister” Akon City in Uganda.
Akoin is envisioned not just as a utility token, but as an ecosystem of tools and services designed for entrepreneurs. It is backed by a multi-currency wallet and decentralized exchange that allows users to trade with each other interchangeably or between major cryptocurrencies without the major hurdles or fees of traditional money exchanges. Users can eventually convert their tokens into fiat currencies or purchase mobile phone airtime. Akoin can be purchased via a secure online wallet using major cryptocurrencies such as stellar, bitcoin, ethereum, or with credit and debit cards.
The central hope of Akoin is to minimize the barriers to entry faced by many entrepreneurs and small businesses such as the extensive paperwork required by banks.
“The Akoin ecosystem will be the infrastructure that allows African entrepreneurs to take part in the gig economies, and will provide the tools they need to compete in the realm of international business for the first time,” the project’s website explains. “With Akoin, African entrepreneurs will have access to financial, health, education, technology, professional, governance and land services, using the Akoin Token as a central medium of exchange.”
The crypto trend in Africa
The Akoin Foundation is working to secure partnerships with companies across Africa willing to adopt the token and integrate it into their digital infrastructure, according to its founding documents (the Foundation did not respond to a request for comment.)
Established companies and startups in Africa are willing to have a shot at blockchain-based financial platforms, but are concerned about the position of central regulators, most of whom are hostile to crypto adoptions, says Clement Gbegnon, a Togo-based risk analyst formerly with the West African Development Bank.
“Payment solutions and investment firms across Africa would like to jump on the crypto bandwagon, but securing a license for legal operations is near impossible presently. Most of those doing crypto-related businesses on the continent are not recognized by their authorities,” Gbegnon says. “Africa seems to be a fertile ground for cryptocurrencies but the boom will only be achieved if they are allowed to operate legally, not necessarily as legal tenders, but as alternative financial solutions.”
The growth of crypto activities in Nigeria, the continent’s largest economy and the world’s third largest place for cryptocurrency trade in terms of volume, yielded some hope that the trend could go continent wide. But an unexpected ban on cryptocurrency exchanges in the country by Nigeria’s Central Bank last February sent shock waves through the African crypto community.
Akoin has partnered with Mwale Medical and Technology City, a $2 billion tech hub in Kenya with 35,000 residents and over 2,000 merchants, to be its sole currency and payment processor. The token has entered its pilot phase in the metropolis, without any objections from authorities for now, according to Julius Mwale, the project’s principal investor.
The Kenyan government encourages electronic money transactions nationwide but is yet to make its stance on cryptocurrency public.
1.5 million monthly transactions expected
“We are expecting to do an initial 30,000 transactions starting next month,” Mwale continued. Residents will be able to swap between the akoin crypto and large mobile minutes, m-pasa, and the U.S. dollar, he detailed. After the initial 30,000 transactions in 30 days, a credit card will also be launched so that merchants that accept Visa or Mastercard will be able to accept akoin. The system will then be scaled up to facilitate 1.5 million transactions a month. He elaborated: