The most recent Kucoin study found that 22 percent of adults in South Africa or around 7.6 million people of the country’s adult population are cryptocurrency investors.
According to the report, 65% of cryptocurrency investors “believe crypto to represent the future of finance”, indicating a significant portion of users appears to select digital assets as their preferred method of savings in order to generate steady returns.
According to the study’s findings, nearly three-quarters (72%) of respondents obtain this information from social media, which explains how South Africans prefer to learn about the cryptocurrency projects they choose to invest in.
The primary opinion leaders in crypto marketing were media personalities and influencers.
Kucoin CEO Johnny Lyu made the following remarks in response to South Africans’ ostensible preference for social media sites as their primary information source:
“According to Statists’ data, 30 million South Africans use social networks, and by 2026, that number is expected to reach 40 million. Influencers,
TikTok bloggers and other producers are rapidly proliferating across the country as social media has proven to offer a simple and easy way for them make money.
“Many Africans are being inspired by the success stories of well-known bloggers of African heritage like Khaby Lame to spend more and more time on social media in quest of employment, income, and dating.”
Lyu claims that social media is now the most efficient way for people to access information. He claimed that this is especially true today when “users’ time is increasingly fragmented and swiftly and effectively accessing information has become a mainstream way of life.”
According to the cryptocurrency exchange’s report, the majority of South African crypto traders are “male and younger generations” in terms of demographics. The majority of cryptocurrency investors in South Africa are men (roughly 60%), and 42% are thought to be in their twenties.
This report also shows how low-income people use cryptocurrencies to address the uneven wealth distribution in South Africa.
The study’s findings, according to the newspaper, “clearly reflect the unequal distribution of wealth in the nation, as 22% of cryptocurrency investors make less than $5,000 a year, while 16% earn more than $50,000 during the same period.”
Although the study’s results do indicate that interest in cryptocurrencies is rising, regulators have taken notice of the persistent reports of South African crypto investors losing money to scammers.
They have responded by either cracking down on crypto entities, or warning the public about investing in cryptocurrencies.
Nevertheless, the study discovered that South African cryptocurrency investors are “maintaining a favorable attitude” toward cryptocurrencies despite the response from regulators as these are proven to be “capable of boosting people’s financial situation.”
The survey found that such acceptance of cryptocurrency is positively impacting the local crypto industry, which in turn helps in the elimination of dishonest players.