The news is everywhere: Ethereum's up! Twenty percent increase, brought about by that maybe-inserts-remark here- US-UK trade deal everyone is celebrating. Look, everybody is talking about this “bullish sentiment” and “institutional accumulation. But over here in Johannesburg, I’m having the exact opposite experience, the exact opposite truth that the headlines are conveniently leaving out. It’s a tale not of shared growth, but of deepening insecurity.

Who Really Benefits From This?

Let's be brutally honest. Who really benefits from these crypto surges? This isn’t the typical mom-and-pop just trying to feed their family. It isn’t the small business owner just trying to get by. And the heavyweights – Abraxas Capital perches on top of the Fortune 500, y’all – are getting in on the action. They’re picking up huge sizes of ETH on Binance and Kraken! We hear about these huge firms, but what about the single mother in Soweto who's heard crypto is the future but can barely afford data to research it, let alone invest?

This new US-UK trade deal, with its low tariffs and exclusions, would have been beneficial to both countries’ economies. Does a 10% tariff reduction on aluminum really reach the spaza shop owner just trying to keep his family alive? No. Most worryingly, this approach encourages speculation and volatility. As a direct outcome, the rich only get richer while the poor become more at risk and their situations harder than ever.

Volatility Feeds the Vulnerable

The price of Ethereum is bouncing around as fast as a rubber ball in an earthquake. Up 20% today, down 30% tomorrow, who knows what next quarter. This isn’t the kind of reliable investment you want for that person who’s working hard to build their own secure future. It's a gamble. And when you’re already living on the edge, you can’t afford to lose. Remember those $188 million in futures liquidations? A large part of that was due to shorts, meaning a significant number of people betting against Ethereum were knocked out. How many of those were simple Africans just looking to make a quick dollar, drawn in by all the excitement?

We’re already witnessing a tidal wave of open interest, and these derivatives are very risky for the untrained. Regardless of whether you are a small business or a tax payer, before you commit your hard earned dollars you need to know how it operates. Sadly, most are deprived of proper education.

This is the danger: The promise of quick riches preys on desperation. This new environment creates a ripe opportunity for exploitation and fraud. We've seen it before. Think back to the Ponzi schemes that were touted as investment vehicles. Done poorly, crypto will only be the next one, preying on the people who can least afford to be taken.

Blockchain's Promise, Distorted Reality

Blockchain technology can help unlock Africa's potential. It would reform supply chain management, boost financial inclusion efforts, and open up countless new economic opportunities. This latest Ethereum boom propelled by Western trade deals and institutional accumulation isn’t helping. It's creating a distorted reality where the technology's true potential is overshadowed by speculative greed.

The Ethereum Foundation awards millions in grants. That's fantastic. What percentage of that money actually goes to the communities that need it the most? How much of it is actually going to projects that are really making a difference in improving the lives of everyday Africans? Is it developing long lasting, sustainable solutions or is it just in the business of feeding the hype machine?

It’s time to move the discussion beyond the price charts and on to the real-world benefits. We need to ask ourselves: Who is this surge really benefiting? How are we going to use this technology to realize the potential it holds for Africa? To succeed, we need to make sure it doesn’t turn into yet another broken promise.

Picture a world where blockchain technology allows us to trace the origins of our coffee beans, guaranteeing all farmers involved receive a fair price. Envision a better world where microloans are deployed in a transparent and efficient manner, and budding entrepreneurs everywhere are empowered. That's the promise of blockchain. A 20% price increase is not going to happen overnight because of a US-UK trade agreement. Most Africans will never see a tangible benefit from it.

Quit obsessing over the cost, and get your eye back on the ball—the people. Otherwise, this Ethereum boom will merely be the most recent case of the world skipping over Africa.