The Nigerian social media landscape has been abuzz with excitement as countless young people shared their newfound wealth from trading and mining Notcoin, a burgeoning cryptocurrency.
Screenshots flooded platforms like Facebook and Twitter (now X), showcasing substantial earnings in US dollars. The testimonials came as a rewarding journey many had embarked upon, having started their trading activities just some months earlier.
Notcoin (NOT), a play-to-earn cryptocurrency, recently surged in popularity, breaking into the top 10 cryptocurrencies by daily trading volume. Its listing on major centralised exchanges, such as Binance and OKX, on May 16, marked a significant milestone.
The coin’s trading volume skyrocketed, exceeding $1.4 billion within 24 hours and securing the eighth position among the most traded cryptocurrencies.
Despite an initial price dip from $0.02156 to $0.006618, Notcoin’s market capitalization surged to $1 billion within minutes of its launch, although it has since stabilized at around $697 million. This robust performance places Notcoin at the 107th position among the largest crypto assets, reflecting its substantial market presence.
Notcoin’s mechanics
Notcoin operates as a unique play-to-earn game within the Telegram app, where users can mine Notcoins by interacting with a mini-app. This model eliminates the typical complexities of crypto transactions, making it accessible to anyone with a Telegram account.
The game’s simplicity and the incentive of earning bonuses through referrals have attracted over 35 million players, with peaks of six million daily active users.
The integration with Telegram has been pivotal to Notcoin’s rapid growth. Utilizing the Telegram Open Network (TON) blockchain, Notcoin ensures seamless transactions and a user-friendly experience, leveraging Telegram’s extensive infrastructure.
Community and economic impact
The excitement around Notcoin extends beyond individual earnings. Telegram founder Pavel Durov recently praised Notcoin’s success, revealing the advantages of the Telegram/TON ecosystem for app developers and crypto enthusiasts.
“Telegram offers app developers more freedom than any other platform, providing unmatched opportunities to leverage social interactions for viral distribution,” he stated.
Notcoin’s community-driven approach has seen 80.2 billion of its 102 billion total supply distributed among community members, with the remainder reserved for future developments. This strategy fosters a sense of ownership and participation, vital for the project’s ongoing success.
Notcoin vs. other play-to-earn cryptos
What sets Notcoin apart from other play-to-earn (P2E) cryptocurrencies is its integration with the widely-used Telegram app and its straightforward tap-to-earn mechanic. Unlike games like Axie Infinity (AXS), which require complex strategies and initial investments, Notcoin’s ease of entry has led to rapid adoption. In just a few months, the game has attracted over 650,000 gamers, a testament to its viral growth and zero-cost entry model.
Currently, Notcoin does not operate on a blockchain nor does it hold real-world value, distinguishing it from other P2E tokens like Axie Infinity’s SLP, which can be traded on various exchanges. However, the developers have hinted at future plans to integrate real blockchain functionality, which could significantly enhance its market position.
The broader Nigerian crypto landscape
The rise of Notcoin comes at a time when Nigeria’s cryptocurrency market is experiencing explosive growth. Ray Youssef, CEO of the leading cryptocurrency platform NoOnes, highlighted the substantial peer-to-peer (P2P) trading volume in Nigeria, estimating it to be around $500 billion. This underscores the country’s significant engagement in the crypto space, despite regulatory uncertainties.
Societal perspective and future implications
The impact of cryptocurrencies like Notcoin on Nigerian youths is multifaceted. Dr. Usman Isyaku, a researcher, emphasised the empowerment crypto offers to young people in regions with limited opportunities. “Crypto is a source of empowerment and hope for the young generation who are living in countries where opportunities are rigged against them from birth.
“Take off your stereotype and see the reality for what it is. It is a decentralised way of participation in the greatest wealth transfer in human history,” he stated.
Bashar Babuga, another commentator, advised his younger brother to invest earnings from Notcoin in learning about the industry, underscoring the importance of knowledge in navigating the crypto world.
Conversely, Aliyu Dahiru Aliyu, a public affairs commentator, expressed caution regarding crypto mining due to potential risks such as cryptojacking and data theft.
He said: “I refuse to engage in mining, especially because I have many followers and could make money from referrals. There are several reasons why I can’t do it.
“Firstly, in financial matters, I prefer certainty, even if there is some risk involved. I could do crypto trading, but I can’t mine about 20 coins and only expect to profit from one or two after investing in all of them.
“I’ve realised that most mining activities are by cryptojackers. These are people who get you to mine for them and then disappear, or they infect your computer or phone to mine without your knowledge through downloaded apps, even if you never open them.
“Secondly, my study of cybersecurity at university has made me cautious about internet activities, especially those that seem fishy. Although there are genuine ones, there are mining operations that steal data through trojan horses. You think you’re making money, but in reality, they’re after your money.
“There are also Cryptoponzi schemes, which are scams similar to MMM. You think you’ve made a lot of money and are happy, but in reality, it’s a trap.
“Thirdly, I believe that if governments were to accept cryptocurrency, it would bring fairness in the management of money worldwide. It is the only decentralised currency that governments cannot just print at will. It requires a collective effort to create the currency through mining. However, you know that world governments will not accept it because it means losing power.
“Major countries like China and Russia have banned it, and America is pressuring those who use it. Therefore, I don’t see a future in it, which is why I don’t want to base my future on it.
“Finally, I don’t want to do referrals and then have problems with someone losing money or data and blaming me. There are many referrals being promoted, but some are by scammers.
“All of this is not to prevent others from doing what they want. I’m just explaining why I choose not to do it, even though I have a big opportunity. I wish those who are doing it well. May they prosper in their ventures, and may we prosper in ours.”
SEC, crypto exchanges fine-tuning regulation
Recently, the Blockchain Industry Coordinating Committee of Nigeria (BICCON) disclosed that it is putting together a roundtable with international and local crypto exchanges and the new director general of the Nigerian Securities and Exchange Commission (SEC) to find a middle ground on the status of crypto in the country.
According to CoinTelegraph, the BICCON chairperson, Lucky Uwakwe, explained that the meeting is open to all digital assets exchange operators, wallet providers, other virtual asset service providers (VASPs), and relevant industry associations and bodies to discuss the bottlenecks and challenges revolving round crypto regulations in the country.
Mr Uwakwe explained that the proposed virtual meeting is being convened at the invitation of Emotimi Agama, the new Director General of the SEC, to flesh out collaborative ideas with key stakeholders in the Nigerian crypto industry.
