Join us at Tekedia Mini-MBA to master the equations of market.

Pick your seat if you have not; we will solve 4 equations of market:

1. Innovation =: invention + commercialization
2. Great Company =: Awesome Products + Superior Execution
3. Products =: Integrate(factors of production) d(people, processes & tools)
4. Differentiate(great products)/d(time) = good life

“Petroleum product marketers in Nigeria have written to President Bola Tinubu to complain that the refinery local prices which have dropped from N1,200 to N1,000 and now N900 per litre are impacting their businesses negatively.” – Devakumar Edwin, the Vice President of Dangote Industries Limited

“Over 95% of petroleum product importers in Nigeria are not buying from the Dangote Refinery.” ~ Dangote Refinery

Nigeria’s core challenge today is not the actual price or rate of petrol (or USD), but the volatility in the system. We always focus on the forward volatility which affects the end consumers. But the backward volatility is also dangerous because that affects lenders and bankers. So, if the price does not stabilize, no bank will provide credit to lift those assets. Yes, if you fund at N1,200/litre and the merchant will sell at N900/litre, wahala dey.

That is the reason why you cannot make an inelastic product to run on “free market” principle, at distribution, when the supply remains bounded, constrained and restricted,  because doing that will mean that price movement will keep shifting due to lack of parity between supply and demand.

What Dangote Group and the marketers are experiencing is expected, and I warned about that here a few days ago: “So, a village boy from Ovim posits that Nigeria cannot run a market-driven regime on petrol when its supply of petrol remains regulated, restricted and controlled, if we hope to attain parity, without welfare losses, in the market system.”

To attain equilibrium in that system will mean someone must compensate with some fudge factors (here, via Naira). Dangote Refinery, government, banks or marketers must decide who “loses” in the short term. The marketers and banks do not want to lose, and the government is out of it. So, what happens? Do not lift Dangote’s asset so that it does not enter the local market, to avoid a shift in the equilibrium. That is what is happening right now, and that is unfortunate!

Cryptocurrency has emerged as a revolutionary force in the financial world, embodying the principles of fairness, freedom, and decentralization. These core values resonate with a growing global community that seeks an alternative to traditional financial systems, which are often seen as centralized and opaque. Cryptocurrency is not just a technological innovation; it is a movement towards a more just and open society. As we look to the future, the principles of fairness, freedom, and decentralization will undoubtedly continue to shape the evolution of finance and the broader socio-economic fabric of our world.

Fairness in the context of cryptocurrency is closely tied to the concept of decentralization. By design, decentralized systems aim to distribute power away from central authorities, thereby offering a level playing field for all participants. In blockchain gaming, for instance, fairness is a critical requirement, and decentralized randomness plays a crucial role in ensuring that all players have an equal chance of winning, free from manipulation by miners or other parties.

Freedom in the crypto space is about the autonomy of managing one’s assets without reliance on intermediaries. This trustless environment, where transactions occur directly between parties, was a foundational goal of Satoshi Nakamoto, the creator of Bitcoin. Nakamoto envisioned a system where “any two willing parties to transact directly with each other without the need for a trusted third party,” especially in the wake of the 2008 financial crisis.

Decentralization is arguably the most defining characteristic of cryptocurrency. It removes the need for centralized authorities, enhancing privacy and protection for investors. Most cryptocurrencies leverage blockchain technology to achieve this, creating a peer-to-peer network that is maintained by a collective rather than a single entity. This structure not only bolsters security but also fosters a sense of community among users who contribute to the network’s integrity.

Furthermore, decentralized finance (DeFi) has been a beacon of hope for the unbanked population, offering access to financial services through mobile technology. With a significant portion of the world’s population lacking access to traditional banking, DeFi presents an opportunity for financial inclusion and empowerment.

The debate around decentralization is ongoing, with discussions on its advantages and challenges. While decentralization offers increased security and fairness, it also presents difficulties in achieving consensus and maintaining efficiency. Despite these challenges, the pursuit of a decentralized financial system continues to drive innovation in the crypto space.

As we look to the future, the principles of fairness, freedom, and decentralization will likely remain at the heart of cryptocurrency’s appeal. These ideals offer a vision of a financial system that is more inclusive, transparent, and resilient—a vision that continues to inspire and attract a diverse array of individuals and institutions around the world.

In conclusion, cryptocurrency is more than just a digital asset; it represents a movement towards a financial paradigm that aligns with the values of fairness, freedom, and decentralization. As the technology matures and the community grows, these principles will continue to shape the evolution of finance, challenging the status quo and offering new possibilities for economic empowerment and innovation.

The share price of Trump Media plunged by over 10% on Wednesday, marking a significant setback for the company following former President Donald Trump’s much-criticized debate performance against Vice President Kamala Harris.

The drop comes a day after the highly anticipated presidential debate, where Trump’s performance was widely panned by political analysts across the spectrum.

This decline brings Trump Media’s stock price to its lowest point since the Truth Social app owner, trading under the ticker DJT, became publicly listed on the Nasdaq in late March. The stock had surged earlier in the week, with a 10% increase on Tuesday as investors appeared optimistic about Trump’s debate chances. However, the poor reception of his performance seemed to erase that momentum.

Trump Media’s stock price has often been seen as tied to Donald Trump’s political fortunes. The company itself has acknowledged that its business model is influenced by Trump’s popularity, with many analysts linking its value to his electoral prospects. Wednesday’s stock drop, following a subpar debate showing, could indicate that investors—many of whom may be Trump supporters—were disappointed with his performance.

During the debate in Philadelphia, Vice President Kamala Harris was widely seen as more composed and articulate, while Trump struggled to stay on topic, frequently reacting to Harris’ attempts to throw him off balance.

“While I don’t think the debate hosts were fair to Donald Trump, Kamala Harris exceeded most people’s expectations tonight,” Elon Musk admitted after the debate.

Political commentators from both sides noted that Harris appeared better prepared, and her team quickly challenged Trump to a second debate immediately after the first one concluded.

Despite Harris’ confidence, Trump seemed uninterested in a rematch. In a post on his Truth Social platform on Wednesday, he reiterated his claim that Harris only wanted another debate because she had “been beaten badly.” He further questioned, “Why would I do a Rematch?”—indicating that a second debate may not take place.

Stock Price Volatility and Trump’s Ownership

Prior to the debate, Trump Media had been experiencing a weeks-long stock decline, which saw shares drop by as much as 75% from their intraday high in March. The company had initially surged during its merger with a blank-check firm that took Trump Media public. However, the downturn has been linked to various factors, including political uncertainty and market conditions.

A key moment contributing to the stock’s volatility was President Joe Biden’s decision to drop out of the 2024 presidential race and endorse Vice President Kamala Harris as the Democratic Party’s presidential candidate. The move shifted the dynamics of the election, presenting Harris as Trump’s primary challenger and potentially reshaping investor sentiment around Trump Media.

Adding to the pressure on the company, insiders—including Trump himself—are expected to be eligible to sell their shares after a lock-up agreement lifts on September 19. Trump owns approximately 57% of Trump Media’s stock, which was valued at around $1.9 billion based on Wednesday’s closing price. It remains unclear whether Trump plans to sell any of his shares once the restriction lifts, but any move in that direction could further impact the stock’s performance.

The connection between Trump’s political standing and the performance of Trump Media underscores the company’s reliance on his electoral prospects. The latest stock plunge may signal growing concern among investors regarding his ability to maintain or grow his political base, especially as the campaign heats up.

Trump Media’s initial success was closely linked to the excitement surrounding Trump’s re-entry into politics and his founding of Truth Social, an alternative social media platform aimed at providing a voice for conservatives. However, the company has faced challenges, both in its operations and in the broader political climate.

With the 2024 election season in full swing, Trump’s media ventures—especially Trump Media—are likely to see continued volatility as investors closely track his political performances and public reception. Should Trump bounce back in future debates or gain ground in the polls, it’s possible that the company’s stock could recover. Conversely, continued political missteps may compound the stock’s decline.

For now, the drop in Trump Media’s share price reflects the high stakes tied to Trump’s political fortunes, with many investors betting on his future electoral success—or failure.