FireUpNow:


Your govt must fight corruption seriously especially the politicians and office holders. State governors, senators and other NAasS members etc, central officials, CBN. Too much wasteful sending and looting going on. Nigeria is not a producing economy but a consuming nation. Let accountability and transparency be in place. If at all the government wants to stop fuel subsidy, it should be a gradual process not something to be done harshly and hurriedly. The govt of the day is making too many economic policy mistakes.

jeejo:
I understand that what I am about to explain will earn me insults from a selected few individuals because the same culprits are active here on Nairaland, so I am ready for that as well.

If you go to Binance P2P, there is a heavy manipulation going on there, and from my deductions, most of the big Binance P2P Merchants are united in carrying out this manipulation. Some of them even have over 2 Million dollars worth of USDT in their Binance P2P Funding which begs the question whether these people are truly Nigerians or probably foreigners making money from destroying the Nigerian economy.

Many people might not understand the strategy these merchants use, therefore, I will try to break it down.

This is how the manipulation works:

1. Lets assume that the Naira to Dollar is currently exchanging at the Parallel market for 1,500 Naira. On Binance P2P, the group of Merchants will create multiple fake ads claiming that they will buy your USDT for 1,700 Naira(way above the parallel market price). I call these ads "fake" because they will set a minimum limit above 5Million naira, which means if you want to sell your USDT to them at this exorbitant rate that they created, you must be selling a usdt value worth over 5Million Naira at once. This strategy works in filtering out majority of average Nigerians that want to sell their USDT to these Merchants. Meaning these fake ads will remain at the top of the p2p "sell" section for as long as these group of Merchants want it to remain. And if by chance someone who has enough USDT to meet the minimum limit decides to sell to these merchants, they will simply cancel the trade, and create another ad.

2. Now because these group of merchants have filled the P2P "sell" section with these fake ads claiming to buy your USDT at an exorbitant rate of 1,700 NGN, they have automatically shifted the P2P price of Naira to USD to 1,700 Naira, and now they will be selling their USDT to the public under the "buy" section above 1,700 Naira. Now - unlike the fake ads they created with a minimum limit that is above 5Million Naira to discourage sellers for selling to them at this high rate - when they are selling their USDT at this already manipulated price, you will find limit as low as 4,000 Naira because they want to sell to the Public at the exorbitant price they created.

Binance P2P is the new AbokiFx where BDC operators get their current price of Dollar from. The fake price originating from there is in turn used by the BDC operators to set their Dollar selling prices even without any corresponding demand. But the interesting part is that these BDC operators won't buy from you at any rate close to the exorbitant price they are selling the dollar to you.
Here in Benin city, even though the parallel market price of Naira is above 1,600 Naira, the Abokis hardly buy your dollar for above 1,500 Naira but they will sell to you only above 1,700 Naira.

Some people might argue that if Binance is to blame, how come the official exchange rate is now above 1,500NGN to 1 USD? The answer to that is simple. Each time the rate in the Parallel market moves up, the CBN is forced to also adjust official rates upwards in order to close the gap between both windows or else the black market rate will be too wide that it will create an irresistible opportunity for round-tripping.

There is a huge rot in the entire BDC system in Nigeria that I don't think this CBN governor has any idea how deep it really goes.

lexy2014:


how are P2P merchants responsible for the present prices?

how is this "pure speculation is what's making naira price go up"?

Difrent:


They are not Solely responsible but they are a part of the problem.
The P2P traders are using Crypto like it is FIAT currency. But it's not.
Cryptocurrency prices depends on speculation
You hold a coin in the expectation that its value will rise..... No nation will allow its currency be played with like this
And it's a duty of every well meaning Nigerian to stop it. Speculators don't mean well for us....just a few of them will put the vaaaast majority of us deep shit if we allow it.....

jeejo:
I understand that what I am about to explain will earn me insults from a selected few individuals because the same culprits are active here on Nairaland, so I am ready for that as well.

If you go to Binance P2P, there is a heavy manipulation going on there, and from my deductions, most of the big Binance P2P Merchants are united in carrying out this manipulation. Some of them even have over 2 Million dollars worth of USDT in their Binance P2P Funding which begs the question whether these people are truly Nigerians or probably foreigners making money from destroying the Nigerian economy.

Many people might not understand the strategy these merchants use, therefore, I will try to break it down.

This is how the manipulation works:

1. Lets assume that the Naira to Dollar is currently exchanging at the Parallel market for 1,500 Naira. On Binance P2P, the group of Merchants will create multiple fake ads claiming that they will buy your USDT for 1,700 Naira(way above the parallel market price). I call these ads "fake" because they will set a minimum limit above 5Million naira, which means if you want to sell your USDT to them at this exorbitant rate that they created, you must be selling a usdt value worth over 5Million Naira at once. This strategy works in filtering out majority of average Nigerians that want to sell their USDT to these Merchants. Meaning these fake ads will remain at the top of the p2p "sell" section for as long as these group of Merchants want it to remain. And if by chance someone who has enough USDT to meet the minimum limit decides to sell to these merchants, they will simply cancel the trade, and create another ad.

2. Now because these group of merchants have filled the P2P "sell" section with these fake ads claiming to buy your USDT at an exorbitant rate of 1,700 NGN, they have automatically shifted the P2P price of Naira to USD to 1,700 Naira, and now they will be selling their USDT to the public under the "buy" section above 1,700 Naira. Now - unlike the fake ads they created with a minimum limit that is above 5Million Naira to discourage sellers for selling to them at this high rate - when they are selling their USDT at this already manipulated price, you will find limit as low as 4,000 Naira because they want to sell to the Public at the exorbitant price they created.

Binance P2P is the new AbokiFx where BDC operators get their current price of Dollar from. The fake price originating from there is in turn used by the BDC operators to set their Dollar selling prices even without any corresponding demand. But the interesting part is that these BDC operators won't buy from you at any rate close to the exorbitant price they are selling the dollar to you.
Here in Benin city, even though the parallel market price of Naira is above 1,600 Naira, the Abokis hardly buy your dollar for above 1,500 Naira but they will sell to you only above 1,700 Naira.

Some people might argue that if Binance is to blame, how come the official exchange rate is now above 1,500NGN to 1 USD? The answer to that is simple. Each time the rate in the Parallel market moves up, the CBN is forced to also adjust official rates upwards in order to close the gap between both windows or else the black market rate will be too wide that it will create an irresistible opportunity for round-tripping.

There is a huge rot in the entire BDC system in Nigeria that I don't think this CBN governor has any idea how deep it really goes.

OkoEmm:



God bless you. You know what you are saying. You just mentioned that binance did/does $1.5m in 24 hours(less than $10m per week. At the NAFEX window over $200-400m is traded per week.

That tells you that Binance is actually used for stupid speculation.

Difrent:


They are not Solely responsible but they are a part of the problem.
The P2P traders are using Crypto like it is FIAT currency. But it's not.
Cryptocurrency prices depends on speculation
You hold a coin in the expectation that its value will rise..... No nation will allow its currency be played with like this
And it's a duty of every well meaning Nigerian to stop it. Speculators don't mean well for us....just a few of them will put the vaaaast majority of us deep shit if we allow it.....

nairalanda1:


Yes, government should fight corruption, but at the end, it won't change the fact that thanks to chronic low oil prices, and borrowing as a result, and debt, we cannot afford subsidy, even if we did as you suggest.

Pirosaw:
I went to my bank to transfer dollars to my US partner, I was asked to withdraw naira from my account and they gave Mallam's number to get the dollar from and come back to deposit the dollar.

The question you should ponder on why can citizen go to the bank to get dollars. CBN and commercial banks know what to do. Don't put your personal problems on people or company.

jedisco:


It's worth knowing about the crypt0 industry before you argue for or against it. Stable coins are pegged to the value of their underlying fiat currencies i.e usdt to the dollar

jedisco:


The irony he had failed to see. How can the miniscule volume on Binance be the one driving the wider market? That rarely happens.

How much forex is generated from over 1m barrels of crude sold daily that its now $1.5m that's having such a profound effect. USDT now serves as a way for the ordinary tech savvy citizen to protect their buying power else poverty comes knocking.

Nobody is mentioning the effect of over 27trillion naira the last government manufactured out of thin air or the excessively expensive loans that were taken up.

Difrent:


I know stable coin and I know you know what I'm talking about.
I'm an early crypto adopter and enthusiast.
That's not to say I should not say things the way they are

Eventually crypto will be universally accepted but it can't replace FIAT CURRENCY.

and just so you know....the thing that was driving crypto is it's decentralization and the fact that there will be no need for Central banks..... but as we can see, that is not even possible.....just that it will be public information instead just being available to a few.

MyVILLAGEpeople:


Seanwilliam any reply on this my boss

seanwilliam:

Una never see anything

Difrent:


They are not Solely responsible but they are a part of the problem.
The P2P traders are using Crypto like it is FIAT currency. But it's not.
Cryptocurrency prices depends on speculation
You hold a coin in the expectation that its value will rise..... No nation will allow its currency be played with like this
And it's a duty of every well meaning Nigerian to stop it. Speculators don't mean well for us....just a few of them will put the vaaaast majority of us deep shit if we allow it.....

YourKarma:


namecheap accepts USDT, travala does, Argemti does. Do your research by yourself instead of swallowing someone else's bullshit

lexy2014:


off point

are you saying that all the cash dollars in Nigeria that comes from the CBN are in the hands of these crypto guys?

simple yes or no

the "some" you are talking about, what percentage is it in the entire dollars in circulation?

vacanci:



gotcha

lexy2014:


1. are you saying that all the cash dollars in Nigeria that comes from the CBN are in the hands of these crypto guys?

simple yes or no

2. the "some" you are talking about, what percentage is it in the entire dollars in circulation?

Therepentant:

It's you that spilling thrash, and all this sites you mention deals with the essential stuff that people needs, how many of them sells things that common man needs, can you ship in merchandise on namecheap?? You can buy clothes on namecheap abi
Am still repeating it, you be mugu

YourKarma:


Argemti sells and ships jewelry, you bloody buffoon. If you had taken 2 minutes to do a little research you wont be here disgracing your lineage

jeejo:
I understand that what I am about to explain will earn me insults from a selected few individuals because the same culprits are active here on Nairaland, so I am ready for that as well.

If you go to Binance P2P, there is a heavy manipulation going on there, and from my deductions, most of the big Binance P2P Merchants are united in carrying out this manipulation. Some of them even have over 2 Million dollars worth of USDT in their Binance P2P Funding which begs the question whether these people are truly Nigerians or probably foreigners making money from destroying the Nigerian economy.

Many people might not understand the strategy these merchants use, therefore, I will try to break it down.

This is how the manipulation works:

1. Lets assume that the Naira to Dollar is currently exchanging at the Parallel market for 1,500 Naira. On Binance P2P, the group of Merchants will create multiple fake ads claiming that they will buy your USDT for 1,700 Naira(way above the parallel market price). I call these ads "fake" because they will set a minimum limit above 5Million naira, which means if you want to sell your USDT to them at this exorbitant rate that they created, you must be selling a usdt value worth over 5Million Naira at once. This strategy works in filtering out majority of average Nigerians that want to sell their USDT to these Merchants. Meaning these fake ads will remain at the top of the p2p "sell" section for as long as these group of Merchants want it to remain. And if by chance someone who has enough USDT to meet the minimum limit decides to sell to these merchants, they will simply cancel the trade, and create another ad.

2. Now because these group of merchants have filled the P2P "sell" section with these fake ads claiming to buy your USDT at an exorbitant rate of 1,700 NGN, they have automatically shifted the P2P price of Naira to USD to 1,700 Naira, and now they will be selling their USDT to the public under the "buy" section above 1,700 Naira. Now - unlike the fake ads they created with a minimum limit that is above 5Million Naira to discourage sellers for selling to them at this high rate - when they are selling their USDT at this already manipulated price, you will find limit as low as 4,000 Naira because they want to sell to the Public at the exorbitant price they created.

Binance P2P is the new AbokiFx where BDC operators get their current price of Dollar from. The fake price originating from there is in turn used by the BDC operators to set their Dollar selling prices even without any corresponding demand. But the interesting part is that these BDC operators won't buy from you at any rate close to the exorbitant price they are selling the dollar to you.
Here in Benin city, even though the parallel market price of Naira is above 1,600 Naira, the Abokis hardly buy your dollar for above 1,500 Naira but they will sell to you only above 1,700 Naira.

Some people might argue that if Binance is to blame, how come the official exchange rate is now above 1,500NGN to 1 USD? The answer to that is simple. Each time the rate in the Parallel market moves up, the CBN is forced to also adjust official rates upwards in order to close the gap between both windows or else the black market rate will be too wide that it will create an irresistible opportunity for round-tripping.

There is a huge rot in the entire BDC system in Nigeria that I don't think this CBN governor has any idea how deep it really goes.

motymop:


why do I have to keep explaining to you that USDT isn't dollar or cant be used for international trade

USDT is a trading stablecoin and can only be used for speculative activities

Nobody is buying usdt to buy oil or to import goods or to pay school or medical fees, if they were really doing that then there will be demands for it to the tune of millions of dollars

In nigeria, the 24 hours volume of usdt on binance is just about $1.5m, that is enough to show that people arent demanding for it like you think in your head.

Traders are just playing a good game, speculating on it and making huge profit from from arbitrage trading

Farrason:


Pls tell him to stfkup if he has nothing reasonable to say. So na P2P weh just start yesterday cause the naira to fall since 1960. When your FG was devaluing the naira consecutively in different dispensation just to woo investors, you lost your voice abi. Will American do same to woo russian investors or German investors... Anu mpama!!

This last one came in and removed subsidy without checking the board for cause and effects... Government is not Chess baby.

Every decision comes with a consequence, you decide the side it falls on if you make an ignorant one or wise one.

Anyways, continue the blaming, someone said basket mouth, today na Binance P2P, tomorrow they will blame Burna, Wizzy, Tiwa and everyone who gets paid in dollars. They should be paid in Naira instead.

CoinMegaTrend:


A country's leadership who doesn't want her citizens to be free from slavery will always give reasons to block the citizens way of survival. While there could be manipulation on Binance regarding sell of Naira, but those who sat and made the decision, did they study how P2P work and think of a better modality that could have been used apart from haulting Binance service of NGN P2P.

The good thing is traders and Crypto earners will find solution by using other exchanges like Bitget. One thing I won't advice anyone to do is to try selling on telegram. That's too risky. All sellers and buyers can use those centralized Exchanges that still operate in our country.