- Fintechs raised roughly two-thirds of the $4.9 billion funded by African tech businesses last year. Fintech enterprises account for 40% of all tech startups with investments above $50 million.
- A class-action lawsuit has been filed against Kim Kardashian and Floyd Mayweather Jr. for promoting Ethereummax and the EMAX cryptocurrency token. Illegal promotional efforts produced trading volume for all defendants to sell EMAX tokens to naïve investors, the complaint claims.
The Fintech report
A recent analysis shows that over two-thirds of the $4.9 billion funded by African tech businesses in 2021 went to fintech firms. Fintechs raised 40% of the money raised in transactions above $40 million.
According to the current Africa Investment Report, “the biggest number of single, non-M&A [mergers and acquisitions] agreements exceeding $100 million” occurred in 2021. The survey also indicates Nigeria has the most fintech businesses with over $100 million financed.
The analysis also claimed that the Covid-19 epidemic might be the key reason for the increase in non-fintech financing.
“The next wave of digitalization — presumably aided by Covid-19 — is boosting areas including e-commerce, agriculture, and healthcare,” the research found.
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Also in 2021, most monies received were focused on a few initiatives, the study admits It says:
This investment size holds substantial weight and works as a pull factor for multiple investors while representing less than 3% of all revealed transactions but over 55% of total disclosed money.
The Africa Investment Report reveals that debt financing is becoming a viable alternative to equity financing. The study cites the fact that 6% of total declared funding in 2021 was debt finance.
The data reveals that the United States is by far the largest source of finance for African IT startups, accounting for 62.5%. The UK came in second with 7.5%, followed by South Africa with 6% and Canada with 4%.
Kim Kardashian and Floyd Mayweather sued
Suing Kim Kardashian and Floyd Mayweather Jr. for promoting a cryptocurrency token The class-action complaint claims Kardashian and Mayweather deceived investors in their promotion of Ethereum Max and the EMAX cryptocurrency.
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Ethereummax, its developers Steve Gentile and Giovanni Perone, consultant and developer Justin French, and promoter Paul Pierce are also defendants.
Huegerich lost money on EMAX tokens. The class action includes EMAX tokens purchased between May 14 and June 27, 2021. The complaint claims:
Illegal promoter defendants provided enough trading volume for all defendants to sell their EMAX tokens to unwary investors.
Aside from that, the complaint alleges that when the plaintiff and class members “purchased the unlawfully advertised EMAX Tokens, [defendants] sold them for considerable profits.”
In a June 2021 Instagram post to her 250 million followers, Kardashian supported Ethereum Max. Kim Kardashian “routinely receives between $300,000 and $1 million for most promotional posts,” the complaint claims.
In June, Mayweather advertised Ethereum Max on his boxing trunks and encouraged supporters to buy online tickets using EMAX tokens.
For failing to report funds he received for fraudulent crypto investments, Mayweather resolved charges with the Securities and Exchange Commission in November 2018. In relation with defendant Mayweather's Ethereum Max marketing, the complaint says the settlement was plainly broken on November 29, 2018.
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A year after its May debut, EMAX's stock jumped 1,370 percent. A 98 percent collapse occurred on July 15, according to the complaint, and it hasn't recovered. Restitution and profit disgorgement are sought.
Following the announcement of the lawsuit, Ethereummax released a statement. In their words, the current claims contain a misleading narrative regarding the Ethereum Max project.
As part of a warning against crypto frauds, Charles Randell, head of the FCA and the Payment Systems Regulator, singled out Kim Kardashian in September 2017.
