Speaking about this latest development, Marius Reitz, General Manager, Luno Africa, said:
“The letter from the [Central Bank of Nigeria] caused a market shock. Luno still has liquidity, but it is a third of what it was previously.
Now, as the price of bitcoin reaches new highs, because there aren’t as many people buying [or] selling bitcoin in Nigeria as there were before, it can lead to periods of low liquidity causing price spikes and dips.”
According to Marius, Luno does not set the price or any cryptocurrency on the platform, and these prices are determined by the supply and demand market forces.
Luno recently hit a milestone of 7 million customers globally, with the majority of its customers being in Africa.
Today, we’re celebrating the milestone of reaching 7M+ customers globally! 💫
Thank you to all of you for your continued support and for helping us build a better financial system together. pic.twitter.com/XM8ZT71oCM