Question: “Sir, I just arrived in America, please can you tell me how I can become financially successful?”
My response: increase the ability to earn money, and that is the summary. But since I have space, I will add more: focus on increasing how much you earn per hour, and not the number of hours you need to earn money. If you improve how much you make per hour, you will unlock wealth in America, but if you focus on working all hours, you will just labour to pay bills and will create a vicious circle that will rattle your personal state of mind.
Remember, just like more people get into trouble here because of too much food, unlike in most parts of the world where the problem is lack of food, pursuing money on hours will lead to troubles. Yes, there is always work to pick and spend the hours! That is an illusion to financial independence.
They have got certifications in anything you can think of. You will see people who accept all hours to flip burgers in fast food stores for $15 per hour, even though a 3-month class in a community college will give them a certificate, which will boost their hourly rate to $33 per hour. You can be an office clerk at $15 per hour, but you can be a certified billing technician at $40 per hour. Both works are largely the same except that one requires a certificate which you can get within 4 weeks.
Do not be inspired by immigrants who boast of working all hours and keeping many jobs. Most times, that happens because of lack of strategic career planning and efforts. They start low like everyone, and then stop dreaming.
And finally, you can be employed in a company as a Clerk and retire as one; the choice is yours, and nobody cares. Demonstrate excellence and showcase how you can help a company create more value, like a magnet, opportunities will come your way. But if you fail therein, nobody cares. That must not happen because there is no village where you can run to escape paying bills as people do in Nigeria. In other words, having a job is like oxygen here because bills are as constant as air. Welcome and good luck.
Outcome: most profitable bank in Nigeria, with a recorded profit-before-tax of ?1.004 trillion in 6 months. This institution is also the most valuable bank in Nigeria.
In Nigerian banking, the average cost-to-income ratio (CIR) is about 60%, but one bank runs at 16%. CIR is the gold standard for measuring efficiency in banking. It tells you how much a bank spends to generate an income. For GTBank, it spends N16.70 to generate an income of N100! One bank in Nigeria spends close to N80 to generate N100 income.
GTbank’s numbers are better than most leading banks in the world. Also, it is better than most fintech companies which hover around 30-40%. Simply, GTbank makes tons of profits because it is super-efficient.
Good People, efficiency wins the race, for companies and nations! GTBank should hold a seat to teach the Nigerian government how to improve productivity. In GTBank, we have the most efficient institution and it is time, we bring it to help. I am looking at the Nigerian budget, and I am struggling to reconcile how the relatively huge expense is generating paltry revenue! Here the cost to income ratio (excluding crude income) is more than 100%!
On that, I recommend the boss of GTBank’s GTCO as the nation’s Chief Productivity Officer. If he can improve the CIR (lol with all those political mafias), good things will happen.
Access Holdings Plc, Nigeria’s largest bank by total assets, reported a pre-tax profit of N146.1 billion in the second quarter of 2024. This represents a notable performance for the bank, which has seen significant growth across its major income lines.
Combined with the first-quarter pre-tax profit of N202.7 billion, Access Holdings’ half-year pre-tax profit now stands at N348.9 billion, nearly double the N167.6 billion recorded in the same period last year.
Key Financial Highlights (Q2 2024 vs. Q2 2023)
Interest Income: N752.5 billion (+113%)
Net Interest Income: N237.6 billion (+84.3%)
Loan Impairments: N99.9 billion (+441.2%)
Operating Income: N585.4 billion (+132.5%)
Operating Expenses: N439.7 billion (+164.7%)
Pre-tax Profits: N146.1 billion (+69.97%)
Loans and Advances: N12.2 trillion (+45%)
Total Deposits: N27.3 trillion (+83.1%)
Total Assets: N36.5 trillion (+75.5%)
Net Assets: N2.72 trillion (+65.3%)
Earnings Per Share (EPS): N7.61
Dividend: 45 kobo per share
Revenue Growth
Access Holdings’ second-quarter results reveal strong year-on-year growth, with interest income surging to N1.4 trillion in the first half of 2024. Loans and customer advances contributed N691.8 billion, while loans to other banks added N86.6 billion. Investment securities generated the remaining interest income.
However, the bank also incurred substantial interest expenses. Deposits from other financial institutions resulted in N419.2 billion in interest costs, while deposits from customers amounted to N411.2 billion. Despite this, Access Holdings’ operating income grew by 132.5% year-on-year.
Fees and commissions contributed N250.9 billion in the first half, driven by credit-related fees, e-business income, and account maintenance charges. The bank’s e-banking expenses, meanwhile, totaled N37 billion.
The bank experienced a significant rise in operating expenses, primarily due to surges in IT and e-business expenses, which grew by 265% to N111.2 billion, and personnel expenses, which surged to N158.8 billion (+143.9%). This increase can be attributed to a rise in staff headcount, promotions, and more managerial employees.
Access Holdings also faced a sharp rise in travel costs, which more than doubled to N24.5 billion, and its AMCON surcharge rose to N111.2 billion from N68.8 billion. Overall, the bank’s operating expenses climbed by 128%, reaching N512 billion.
Subsidiary Performance
Among Access Holdings’ subsidiaries, Access Bank UK and Access Bank Ghana were standout performers, contributing N111.1 billion and N40 billion in pre-tax profits, respectively. On the other hand, Access Bank South Africa and Kenya posted pre-tax losses of N7.6 billion and N3 billion, respectively.
Hydrogen Payment Services, the bank’s new fintech subsidiary, reported a pre-tax profit of N238 million from N3.1 billion in revenue, a growth from N161 million in the same period last year. Newly acquired Access Pension and ARM Pension contributed revenues of N7.1 billion and N8 billion, respectively, while Access Golf reported N1.9 billion in revenue.
Fidelity Bank Soars Amid Bullish Market
Meanwhile, Fidelity Bank Plc has been riding a wave of bullish sentiment on the Nigerian stock market. By the third week of September, its share price surged past the N13.00 mark, gaining over 20% month-to-date.
This rally comes on the heels of the bank’s hybrid rights issue and Initial Public Offering (IPO) launched in June 2024. Fidelity Bank raised a total of N127.1 billion through a combination of 10 billion ordinary shares at N9.75 for the public and 3.2 billion shares at N9.25 for existing shareholders. Market enthusiasm for the offer was so strong that it was extended by an additional 8.2 billion shares.
After a brief period of price consolidation between June and August, the stock saw renewed momentum, with weekly volumes reaching 27 million shares by mid-September. Fidelity Bank’s share price has risen more than 680% since August 2018, when it traded below N2, marking a remarkable long-term bullish trend.
In a message to investors, Fidelity Bank Managing Director Nneka Onyeali-Ikpe expressed satisfaction with the capital raise, stating, “We have met and surpassed the capital-raise target we set for ourselves in the first phase of our exercise,” while praising investor confidence in the bank.
The performances of Access Holdings Plc and Fidelity Bank reflect the broader resilience of Nigerian banks, despite the challenging economic environment. Access Holdings’ strong revenue growth, despite rising costs and impairments, demonstrates the robustness of its diversified business model. Meanwhile, Fidelity Bank’s successful capital raise and subsequent share price surge point to continued investor confidence in the sector.
Amid economic headwinds, Nigerian banks have shown remarkable adaptability, with others such as Zenith Bank and GTCO declaring huge profits for the half year 2024.
The much-anticipated implementation of Nigeria’s new minimum wage, initially scheduled to cushion the economic shocks following the removal of fuel subsidies and the floating of the foreign exchange market, has faced another delay. The Committee on Consequential Adjustments in Salaries for civil servants has now agreed to push the effective date to July 29, 2024, after the government missed the earlier deadline of May 1, 2024.
According to the Memorandum of Understanding (MoU) issued at the end of the committee’s meeting in Abuja last Friday, the wage increase, which was meant to soften the blow from rising inflation, was supposed to have been rolled out as early as April 2024. That date marked the expiration of the previous N30,000 minimum wage, a figure long outpaced by Nigeria’s economic realities.
The new minimum wage of N70,000, as outlined in the National Minimum Wage Act 2024, was intended as a critical measure to provide relief from the escalating cost of living. The removal of fuel subsidies in 2023 led to a spike in fuel prices, which further increased transportation costs, while the floating of the foreign exchange (FX) market caused rapid depreciation of the naira. Together, these factors created widespread economic hardship for Nigerians, who have seen a steep rise in the prices of essential goods and services. In this context, the new wage was supposed to act as a buffer to prevent the erosion of real incomes.
Yet, five months after the initial deadline, the federal government, still, has not implemented the new wage.
The introduction of a wage award to offer some interim relief has also fallen short. Reports indicate that many civil servants did not receive the wage award for the six-month period from October 2023 to February 2024. This has led to skepticism among workers about the government’s sincerity in following through on its promise to extend the award payments until July 2024.
The committee, headed by the Head of Civil Service of the Federation, Didi Walson-Jack, is tasked with working out the finer details of the new minimum wage rollout. Other key members include Benjamin Anthony, chairman of the public service negotiating team of organized labor, and Ekpo Nta, executive vice chairman of the National Salaries, Incomes, and Wages Commission (NSIWC). In the MoU, the committee recommended that the NSIWC should develop the necessary salary templates for other consolidated salary structures to ensure that the wage adjustment is implemented correctly.
However, the uncertainty surrounding the actual implementation remains a major concern. Even with the July 29, 2024, date set, there is no guarantee that the new wage will come into effect. A growing number of state governments have already voiced concerns over their ability to pay the N70,000 wage due to strained financial resources.
The potential for non-compliance among states is high, as many are struggling to meet existing salary obligations under the current N30,000 minimum wage. Several state governments have openly expressed that the financial burden of the new wage, coupled with other economic challenges, is simply too much to bear without federal assistance.
This gap between federal and state capacity has further deepened fears that civil servants across various states may face delays or outright refusal of the wage hike, even if the federal government manages to implement it for its employees. Without concrete financial support, states may continue to push back on the wage increase, forcing workers to wait even longer.
The delay comes against the backdrop of dwindling spending power buoyed by soaring inflation. Economists have argued that without the timely implementation of the wage increase, the gap between wages and living costs will only grow wider, further entrenching poverty among the working population.
The interim wage award, originally introduced to provide immediate relief, was seen as a stopgap measure. But with inconsistent payments, the measure has done little to alleviate the burden for civil servants.
In defense of the delays, the committee, led by Walson-Jack, emphasized that the federal government took into account the broader economic situation before making its decisions.
Cryptocurrency is a growing technology, with new and innovative solutions constantly being built on the blockchain. Smart contracts play a key role in this progress by enabling the development of chains, protocols, apps, and other blockchain products that benefit both users and developers.
As of August 2024, Statista reports over 10,000 cryptocurrencies, highlighting a market with a global capitalization of $2.1 trillion. This expansion has led to a surge in cryptocurrency projects, with many innovators now exploring decentralized finance (DeFi) to offer new solutions.
Source: Statista
However, despite the growth opportunities, there are still challenges. With so many projects entering the space, startups often struggle to stand out in the crowded blockchain market. At the same time, investors find it difficult to identify the right projects to invest in.
This is the problem that launchpads aim to solve. So, what are crypto launchpads, and how do they work? Let’s take a closer look.
What is a Crypto Launchpad?
Launchpads serve as incubators that guide crypto projects through the process of penetrating the market, gaining visibility, and raising funds to expand their business. They function like traditional incubators but are specifically focused on crypto. These platforms assist early-stage projects with marketing, fundraising, initial token launches, and distribution.
How Does a Crypto Launchpad Work?
How a Crypto Launchpad Works
Launchpads make crypto fundraising easier by overseeing public sales, where users stake crypto to join an Initial Coin Offering (ICO). Your stake decides your tier, which affects how much of the sale you can access. Payments are usually made with stablecoins like USDT, USDC, or DAI, and there are often minimum and maximum limits for each investor.
Before the sale begins, you’ll need to register. If the sale is undersubscribed, meaning fewer tokens are claimed than available, extra tokens may be offered in a first-come, first-served phase.
Some sales also use a lottery system, where you stake tokens to enter, and winners are chosen at random. If selected, you can buy the tokens. After the sale ends, you can claim your tokens based on your tier and choose whether to hold, stake, or trade them.
Launchpads commonly utilize lockup periods and vesting schedules to ensure commitment and regulate price volatility. Additionally, many launchpads implement staking mechanisms where participants who stake more tokens may receive higher allocations or rewards during the token sale. However, the specifics of these rewards and staking benefits can differ between launchpads and projects.
Different Types of Launchpad Token Sales
Crypto launchpads help connect startups with investors in different ways. They offer crypto assets to early investors through various methods. Here are some common types of launchpad token sales:
Initial Coin Offering (ICO)
Cryptocurrency projects often crowdfund from early investors to enhance scalability. While ICOs are similar to Initial Public Offerings (IPOs) used by traditional companies, they differ because ICOs involve exchanging a portion of future coins rather than shares or equity for investment.
Projects running ICOs may use their own websites or third-party platforms like CoinList to offer investment opportunities. For example, Ethereum held its ICO in 2014, and Tezos held its in 2017.
Initial Dex Offering (IDO)
IDOs happen on decentralized exchanges (DEXs), where Automated Market Makers (AMMs) help with trades. Platforms like DuckDAO and Trustpad let projects launch tokens through IDOs. They use liquidity pools to release tokens, allowing investors to buy them by providing liquidity.
IDO processes are usually controlled by smart contracts, which automatically handle transactions and adjust token prices based on supply and demand. However, because trading within the liquidity pool sets the token’s price, there can be issues like low liquidity and price volatility.
Initial Exchange Offering (IEO)
Centralized exchanges (CEXs) handle Initial Exchange Offerings (IEOs). The exchange vets the project for credibility and potential success, then helps manage the token sale and listing process.
This allows projects to tap into exchanges’ credibility and wide user base to raise capital. As a result, users need to have an account with the exchange before they can participate in the investment process. Examples of such exchanges include Binance and Bybit.
Initial NFT Offering (INO)
Crypto projects use Initial NFT Offerings (INOs) to raise funds. They launch Non-Fungible Tokens (NFTs) on platforms like Magic Eden, OpenSea, Rarible, and NFTb. The INO price depends on the project’s mint price, and the collection is often limited in supply to create scarcity and value.
Projects can launch these NFTs by first creating a mintlist or an allowlist. This list works like a presale, giving early community members or investors the chance to buy at a lower price before the public mint opens. Investors can purchase the NFTs using the native coin of the blockchain the project is launching.
Initial Game Offering (IGO)
When a gaming project is nearing its launch, the team may conduct an Initial Game Offering (IGO) to secure funding. During an IGO, early investors support the project in exchange for valuable in-game assets such as characters, weapons, skins, or tokens that will be important for in-game purchases. Examples of such launchpads include Enjinstarter and xLaunchpad.
What are the Advantages of Crypto Launchpads?
Crypto Launchpads provide several benefits for projects and investors:
For Projects and Founders
Crypto launchpads provide a wide range of opportunities for crypto projects and founders. Below are some of the ways launchpads benefit them.
Streamlined Fundraising
Launchpads enable projects to crowdfund from early investors in a streamlined manner. The platform plays an important role in this process by allowing projects to tap into their existing user base to raise capital.
At the same time, launchpads offer a simple fundraising process that helps projects use funds to better scale their product, expand operations, and focus on other important parts of development.
Visibility Boost
Launchpads contribute to a project’s marketing and promotion efforts. They boost visibility by using their large user base and helping projects reach potential investors.
For instance, exchange launchpads like Binance and Bybit engage in various promotional campaigns to attract investors. They typically use content marketing through channels such as newsletters, social media posts, and banner ads. Additionally, they may employ other strategies like staking rewards, offering exclusive access, and hosting special events to further boost visibility and token appeal.
Trust and Community Building
Crypto launchpads help founders build a supportive community, gain investors’ trust, and establish credibility. Founders can rely on the reputation of an exchange or launchpad to earn the confidence of potential investors.
They can use Question and Answer (Q&A) sessions to address concerns, host webinars for project clarity, and use launchpad support services to build credibility before the launch.
Additionally, projects can use social media contests or offer exclusive access to token sales on launchpads to build community engagement before their official launch. These incentives encourage active participation, helping to attract and nurture potential users in the early stages.
For Investors
Crypto launchpads are beneficial to investors by providing them with access to several opportunities and rewards. Below are some of the advantages of crypto launchpads for investors:
Early Access to Investment Opportunities
Crypto launchpads allow investors to fund early-stage startups in return for future tokens or NFTs. This enables investors to fund promising projects and profit from them as they gain traction to maximize their return on investment (ROI).
Flexibility and Accessibility
The simplicity of launchpads, especially those on centralized exchanges, makes it easier for crypto investors to support high-potential startups and potentially earn future rewards. To participate, investors must stake a specified amount of cryptocurrency, complete KYC (Know Your Customer) verification, and then receive tokens after the launch. Although this process may be unfamiliar to new investors, centralized exchanges help simplify the investment experience.
Additionally, launchpads simplify the vetting process for investors. Since projects are pre-evaluated, it’s easier for investors to find promising opportunities. This reduces the need to research many projects, although investors should still perform their own due diligence.
Reduction Of Price Volatility
Crypto launchpads use vesting and lock-up periods to prevent investors from selling off their assets all at once. These mechanisms require investors to lock up their stakes for a specified period, which can range from a week to several years. This helps to ensure price stability and promotes long-term holding among investors.
Safety and Security
Crypto launchpads strengthen security for investors through smart contracts and multi-signature wallets. Smart contracts automate various processes, including vetting projects, managing token sales, tracking investor contributions, and ensuring fair distribution of tokens, whether through level or lottery systems.
While centralized exchanges like Binance and Bybit provide these benefits, decentralized launchpads such as TrustPad and Polkastarter might offer additional advantages due to their decentralized nature. This further increases transparency and trust.
Furthermore, launchpads employ multi-signature wallets to strengthen security. These wallets require multiple keys to authorize transactions, which helps to protect against fraud and unauthorized access.
Disadvantages of Crypto Launchpads
While launchpads are highly beneficial, they also pose some risks for both founders and investors:
For Founders
Although founders get access to key project opportunities through launchpads, they are not excluded from risks. Below are some of the disadvantages of crypto launchpads for founders:
High Competition Rate
Cryptocurrency launchpads feature many different projects, so each project must compete for visibility to stand out. Because of the large number of projects, raising funds can be highly competitive. Launchpads offer investors a wide variety of options, which may lead them to spread their investments across several projects rather than committing heavily to just one.
Legal or Regulatory Risks
Since cryptocurrency is still growing, projects sometimes face legal scrutiny from financial authorities and the government if they’re unable to adapt to new regulations. Meanwhile, this ensures that projects meet legal requirements, which differ across regions.
At times, legal non-compliance issues may arise, which may result in team penalties. In cases where projects fail to fulfill their promises to investors, it may lead to legal prosecution or a fine.
For Investors
While investors may benefit tremendously from crypto launchpads, there are also challenges. Here are some disadvantages of launchpads for investors:
Project Failure
In cryptocurrency, nothing is fully guaranteed. Although launchpads provide vetting systems before approving projects, the success of these projects cannot be ascertained. Volatility and market manipulation may impact tokens, causing prices to plummet and affecting liquidity.
Non-Compliance Risks
If a project fails to meet legal requirements, it may face legal challenges that could harm its growth. This can also affect the token’s value by causing speculation among investors.
Additionally, legal cases may cause projects to divert funds meant for operational efficiency into fines and other legal settlements.
Lanchpad vs. Launchpool: What Is the Difference?
Launchpad vs. Launchpool
Launchpads and launchpools both allow investors to stake crypto to earn token rewards for future sales. However, a launchpad is a platform that helps projects raise funds and lets investors support crypto startups, while a launchpool is a feature on such platforms that enables investors to stake crypto specifically for token sale rewards. Examples include Trustpad Launchpad and Binance Launchpool.
FAQs
How can I get my project on a crypto launchpad?
To get listed on a crypto launchpad, you must first submit your project details, whitepaper, and team information for evaluation. After due diligence, including background checks and technical verification, you will set up fundraising goals and token sale parameters.
The launchpad then handles marketing, promotion, and the execution of the sale while managing investor contributions.
How can I invest in a token sale?
To invest through a crypto launchpad, start with registration and complete the identity verification process (KYC). After verification, research the listed projects, focusing on the team’s background, technology, and market potential.
Once you’ve made your assessments, participate in the token sale, staking your stablecoin or other crypto assets for the required duration.
After investing, monitor your token’s performance regularly, access your tokens, and explore available trading options to maximize your investment.
What is the Best IDO Launchpad?
Several IDO launchpads are available today, including Trustpad, Polkastarter, DuckDAO, and BSCPad, among others. While these launchpads have received positive reviews over the years, always conduct due diligence and choose a platform that aligns with your goals.
Bottom Line
In summary, crypto launchpads play a key role in helping projects gain visibility, raise funds, and build communities. Besides that, they also offer investors early access to promising opportunities.
Despite the pros, both founders and investors are prone to regulatory risks and unguaranteed project success.
Additionally, the industry is growing, and in the coming years, launchpads may offer more opportunities along with potential risks. Always stay alert for new ecosystems and updates. Also, be sure to research thoroughly before launching or investing in any project.
Disclaimer!: This article is solely for educational purposes, and no piece of information should be considered financial advice. Always do your own research (DYOR) before investing in any aspect of crypto.
