After dominating the African Market for many years, Luno is considering tapping into the American market. Luno has gathered over 9 million users since its inception.
Luno To Enter The American Market
When it started operations in 2013, the company was initially centered on increasing the adoption of cryptos in countries with developing markets. Now, the exchange firm is looking to test new waters by venturing into the United States market before the year ends. The United States has one of the biggest crypto markets globally, with stiff competition.
According to Mauris Reitz, General Manager of Luno (Africa), the organization is setting up measures that will enable it to comply and adapt to the legal system common to the states in America. The firm already has a strong presence in South Africa, Singapore, Australia, Malaysia and will work hard to join the top exchange firms after settling in the United States.
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When Luno was in Africa, the series B firm had a tough competition with Binance, one of the world’s largest cryptocurrency platforms. Most of the patronage it received came from South Africa and Nigeria. In 2021, the exchange gained over 2 million users, 40% of whom are from Nigeria and South Africa.
From reports, Togo, Kenya, and Nigeria are among the ten countries that adopted crypto worldwide. This adoption rate shows that the company has achieved part of its mission. If the firm wishes to drive crypto more into Africa, it has a lot of work to do.
Currently, Luno is valued at $10 billion. Still, the organization wants to increase this and attract credibility by entering into a partnership with global investors such as Naspers and Digital Currency Group. Also, the firm plans to go into ETF trade both in the US and Africa. Exchange-traded funds are securities that track the price of assets such as Ethereum and Bitcoin without exposing the holder of the asset.
Luno’s dream of entering into ETF trades may be cut short because of the issue in the US.
Situation Of The American Market
The Securities Exchange Commission (SEC) in the US is still struggling to enact laws for the ever-growing cryptocurrency industry and is taking things one step at a time. Recently, SEC rejected the ETF application of Bitwise and Skybridge due to the work-week crisis in the stock market. Presently, trading of ETF in the stock market closes on Friday night, which will not work for the crypto market that runs 24 hours every day. The same issue is affecting South Africa, which has made the company stop its plan until the situation changes.
Luno has done well in the African Market but thriving in the US market is a different ball game. For market dominance, the firm will have to compete with top exchange firms like Binance and Coinbase.
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