I'm Amahle, reporting from Johannesburg, and I've spent years covering the social impact – or often, the lack thereof – of new technologies in Africa. The Solana ETF hype is loud, ushering in what many are claiming will be a new age of crypto investment. Of course Wall Street is salivating at the thought of an “altcoin ETF summer.” I do see a perfect storm on the developing world that could make these disparities much worse.

Are We Repeating Past Mistakes?

Remember the promises of microfinance? David Malpass hailed it as a revolutionary tool to lift millions out of poverty. Rather than buoying them through hard times, it sometimes sunk at-risk Americans deeper into debt. Are we barreling into the same reality with crypto ETFs? This is an even greater risk in communities with low financial literacy and a lack of regulatory teeth.

I first encountered Khadija in a pastoralist community last year in rural Kenya. She’s a farmer, clever and industrious, but hard pressed to survive. Picture a person like Khadija getting pitched Solana ETFs as their ticket to the moon. She may hear that it’s the future of finance, a means to avoid banks, and make millions.

This is how Khadija will find out that cryptocurrencies are as volatile as they come. She won’t hear about the complicated mechanics of ETFs, the increased risk for scam and market manipulation, or the consumer protection void. She certainly shouldn’t be told that the smart people are still figuring out this stuff.

The digital divide is more than just access to the internet. It’s about access to critical health information and the ability to skeptically weigh the quality of that information. Analysts such as Eric Balchunas and James Seyffart are already making predictions on which altcoins will be getting the ETF green light first. At the same time, 80 percent of people in developing countries still live on less than $10 a day.

Digital Divide's Dark Side Unveiled

How can we, in good conscience, push complex financial products onto populations that lack the resources to understand and manage the risks?

The Trump administration’s pro-crypto agenda and the initial success of Bitcoin ETFs are fueling this momentum. We mustn’t confuse conjecture with civilizational advance. Just because Bitcoin ETFs have welcomed in over $130 billion doesn’t mean altcoin ETFs will instantaneously uplift the entire developing world. Just because Trump Media & Technology filed for a Bitcoin ETF doesn’t mean you should follow suit.

  • Limited Access: Smartphones, internet, reliable electricity are luxuries for many.
  • Low Financial Literacy: Complex financial products are already difficult for the educated to understand.
  • Language Barriers: Most financial information is in English, not local languages.

Without strong regulatory frameworks — which are non-existent in many developing countries — the conditions for exploitation run rampant. Unscrupulous actors may be quick to capitalize on the excitement around Solana ETFs to scam at-risk communities. Picture pyramid schemes under the guise of crypto investments, or phony ETFs that disappear overnight with consumers’ retirement dollars.

Exploitation's Playground Opens Up

We need to have the other environmental elephant in the room beef. Despite its potential, blockchain technology has a hefty carbon footprint. Climate adaptation developing countries are at the highest risk of the impacts of climate change. Yet, they tend to be the places that will experience most of the environmental harm with minimal monetary gain.

The Polymarket betting odds show that the experts are not all confident. For Litecoin, they predict a peak of 76% and 64% for Cardano. Another item worth mentioning is the speculative nature of the market. It's a gamble, and vulnerable populations can't afford to lose.

  • Increased Energy Consumption: Mining cryptocurrency requires significant electricity.
  • E-Waste: Frequent hardware upgrades contribute to electronic waste.
  • Resource Depletion: Mining activities can damage ecosystems.

We need to do a better job centering community organizers, educators and activists. After all, they are the ones doing the work on the ground who best know the complicating realities of poverty and inequality. We must refocus our efforts on financial literacy education, increasing the strength of regulation, and requiring more transparency.

The risks of Solana ETFs likely outweigh their potential profits. We need to be aware of the ways in which they are likely to increase current inequalities and vulnerabilities in the developing world. I, for one, am not convinced. As appealing as easy money may appear on the surface, there are always drawbacks beneath the surface. Unfortunately, it’s the most vulnerable among us who suffer the consequences.

We need to ask ourselves if the potential profits of Solana ETFs are worth the risk of exacerbating existing inequalities and vulnerabilities in the developing world. I, for one, am not convinced. The promise of easy money often comes at a steep price, and it's the most vulnerable who end up paying it.