About 22% of the adult population in South Africa has invested in cryptos, according to the latest KuCoin study. The study indicated that 72% of respondents said they get info about crypto projects via social media. Also, media personalities and influencers were found to be central in promoting cryptos.
Media Personalities and Influencers Important in Defining the Crypto Opinion
In their latest survey, Kucoin found that 22% or 7.6 million of South African Adults between 18 and 60 years have invested in cryptos. The study also established that 65% of crypto investors view cryptos as the future of finance. More people are considering cryptos as their preferred method of savings to generate stable returns.
When explaining how people are getting this information on crypto projects, the survey established that they gather info from social media. Also, influencers and top media personalities are shaping the crypto space, especially through promotions.
“The data revealed by Statists shows that 30 million South Africans are social network users, and this figure is projected to grow to 40 million users by 2026. The country is seeing a rapid growth of influencers, TikTok bloggers, and creators for whom social media have proven to be an easy and accessible source of income. The examples of well-known bloggers of African descent, such as Khaby Lame, are encouraging many Africans to spend more and more time on social networks in search of work, earnings and dating, said Johnny Lyu, the CEO of Kucoin.
Lyu also added that social media had become an easy way of getting information, especially now that users’ time is fragmented.
Unequal Wealth Distribution in South Africa
The giant crypto exchange also found that African crypto investors are predominantly male and young. Men account for 60% of crypto investors in the country, and 42% of the investors are people between 18 and 30 years. The study also exposed the country’s inequality in wealth distribution. Low-income earners are using cryptos as a tool to remedy the situation.
“The unequal distribution of wealth in the country is well illustrated by the findings of the report, as 22% of crypto investors earn less than $5,000 a year, while 16% earn more than $50,000 during the same period,” the study report explained.
Even as the report indicates the growing popularity, regular reports of scammers stealing money from people have attracted the attention of regulators. Now, they have started cracking down on crypto entities and are warning investors to keep away from cryptos.
Even with the warnings, the focus by investors on cryptos appears strong as they believe that this can help improve their financial health.