- A Cardano fund has been launched to finance blockchain products on the African continent.
- The fund is targeted toward the most innovative projects on the continent.
- Cardano has been exploring Africa since 2017 and has struck an important partnership with Ethiopia’s government.
Cardano, the third-largest cryptocurrency, is expanding its reach into the African frontier. It intends to achieve this through the launch of a $6 million fund to support innovation on the continent.
$6 Million Fund
Cardano seeks to plant its feet firmly in Africa and in a bid to realize its goal, it is setting up a fund to finance revolutionary projects that are built on the blockchain. The focus on blockchain solutions stems from the “lack of deeply embedded legacy infrastructure” that has the potential to even the odds for the continent.
The fund will provide capital while IOHK, the organization behind the development of Cardano will provide teaching and mentoring services to ensure the success of the selected projects. Startups building projects on Cardano will be prioritized and a reason for the launch of the fund is because of the large number of entrepreneurs in the continent.
“Working with businesses in Africa, I have encountered the most inspirational entrepreneurial spirit. At Input-Output we believe in democratizing opportunity, which means giving equal access to funding to realize these innovative ideas, solving problems around the world,” says John O’Connor, IOHK’s director of African operations. He added that the fund will go a long way in helping the youth to “flourish and capitalize” on the opportunities that abound on the blockchain.
Cardano is currently trading at $2.25 and has a market capitalization of $72.04 billion which places it as the third-largest cryptocurrency. The project incorporated smart contract functionality last month with its Alonzo hard fork which introduces the network to the realms of DeFi and expands its applicability.
Cardano’s Deep Roots
Cardano entered into a partnership with the Ethiopian government to improve high school education in the country. The deal will see students across the country given a digital identity that contains all records of their academic performance. 5 million students are projected to be directly impacted by this partnership.
Cardano has also forged a partnership with SingularityNET and iCog Labs to leverage AI, blockchain, and machine learning to support scientists on the continent. It has entered into a partnership with World Mobile to connect remote areas across the continent.
Charles Hoskinson, Cardano’s founder, believes that the greatest demand for blockchain technology “is going to start in places like the continent of Africa”. Emurgo, Bitmex, and Kraken have all announced funding for the improvement of crypto adoption and startups in the African continent.
Why It Matters
Africa is experiencing a surge in cryptocurrency adoption with Nigeria, South Africa, and Kenya leading the charge. An inflow of funding will certainly go a long way in improving the adoption and use cases for blockchain technology on the continent.