We see the headlines: Ethereum rebounds! Analysts predict breakout! Really, who gives a damn about EMA resistance levels when a person’s life is falling apart in reality. In our work, we place disproportionate attention on technical analysis and profit-chasing. At the same time, we tend to ignore the human toll that crypto volatility takes. That cost, I would argue, has been disproportionately paid by those who are least able to afford it.

Dreams Dashed, Savings Wiped Out

Let’s talk about Nkosi. Not me, the writer (though I do hail from Johannesburg), but a fictitious Nkosi. Or maybe he's not hypothetical. Maybe he's a real person in Soweto who poured his savings, meant for his daughter's education, into Ethereum, hoping to build a better future. He listened to the stories, the hype, the tall tales of quick riches. He envisioned the opportunity to break the cycle of poverty that has gripped his family for centuries.

Suddenly, that dream is deferred. Maybe permanently. So now answer me this, does it mean anything to Nkosi that Ethereum has since rebounded above $2400? Does it help him remove the knot often in his stomach or put food back on his table. No. It doesn't.

This isn’t just about Nkosi, though. Millions of people in developing countries such as South Africa, Nigeria, and Vietnam are leaning on crypto for support. They view it as a lifeline, a tool to circumvent unavailable or inadequate financial services and capture opportunities that have long been inaccessible. They are the ones truly paying the price!

We preach about crypto being this great tool for financial inclusion. But is it, really? Or is this merely predatory lending dressed up in language that sounds like innovation? For most, buying crypto is like playing the slots. It’s a last-ditch effort to get a leg up in a world that seems like it’s been set against them from the start.

Financial Inclusion or Predatory Lending?

In developed nations, losing a portion of your crypto portfolio might sting. Yet in developing countries, it can be completely catastrophic. It can even decide if you’re going to send your kid home from school. It can affect your ability to access healthcare and feed your family.

The extreme volatility of assets such as Ethereum only deepens these inequalities. Only the rich can afford to ride out the storms, to HODL through the dips. Yet those people living on the margins are much more at-risk to these price fluctuations. This isn’t financial inclusion, it’s financial roulette.

So, what can we do? To be clear, I am not calling for an outright prohibition on crypto. That would be foolish and, frankly, impossible. We do need to have a serious discussion about responsible innovation. We can’t overlook the need to find solutions to the dangers of crypto investing, especially for our most at-risk communities.

A Call for Responsible Innovation

The Ethereum crash is a wake-up call. Keep in mind, between charts and technical analysis are regular people trying to make a difference with their lives. The truth is our decisions have the most meaningful impact on their lives. Let's not lose sight of that. Join us to demand a fair and responsible crypto ecosystem. Our intent is to make sure that all Americans — not just the wealthy, corporate elite — really do reap the rewards. Let’s make sure Nkosi’s dream will not die in vain.

Aren’t we all Nkosi though?

  • Financial Literacy Programs: Education is key. We need to equip people with the knowledge and skills to make informed investment decisions.
  • Community-Based Support Networks: Creating support systems where people can share information, get advice, and offer emotional support.
  • Regulation (with a light touch): While I'm generally wary of heavy-handed regulation, there's a role for government to play in protecting vulnerable investors from scams and predatory practices.

The Ethereum crash is a wake-up call. It's a reminder that behind the charts and the technical analysis, there are real people with real lives who are being affected by our decisions. Let's not lose sight of that. Let's strive to build a more equitable and responsible crypto ecosystem – one that benefits everyone, not just the wealthy elite. Let's not let Nkosi's dream die in vain.

Because at the end of the day, aren't we all Nkosi?