An analysis of Project Feasibility for Investors and Partners

In an era defined by rapid technological shifts, Africa stands on the cusp of a digital revolution. Yet, for many, the promise of the digital economy remains out of reach due to affordability, complexity, and centralization. This is precisely the challenge Coin Afriq, a pre-seed startup based in South Africa, is poised to address. We’re building an affordable, Pan-African cryptocurrency and blockchain designed to be fairer, more democratic, and truly decentralized, ensuring every African can actively participate in and benefit from the digital future.

Unlocking Africa’s Digital Potential

The African continent presents an enormous opportunity for innovation in the digital finance space. With a Total Addressable Market (TAM) of $2.9 billion for cryptocurrency and blockchain solutions, the demand for accessible and impactful financial technologies is undeniable. While the global crypto economy sees Sub-Saharan Africa accounting for 2.7% of transaction volume (USD 125 billion between July 2023 and June 2024), with stablecoins making up a significant 43% of the region’s total crypto transaction volume, there’s vast untapped potential for solutions tailored to the unique needs of the continent.

African Cryptocurrency Projections

Coin Afriq is focusing on the Serviceable Available Market (SAM) of $17.4 million and aims to capture a Serviceable Obtainable Market (SOM) of $1.74 million, demonstrating a clear pathway to establishing a significant foothold. Our long-term financial projections are ambitious yet grounded in this market reality, with an anticipated Annual Recurring Revenue (ARR) of $60 million after year five. This growth will be fueled by a robust and efficient business model, evidenced by a strong Lifetime Value (LTV) of $64.80 against a Customer Acquisition Cost (CAC) of $16.20, yielding an impressive 4:1 LTV/CAC ratio. This indicates that for every dollar invested in acquiring a customer, we expect to generate four dollars in return over their lifetime.

Coin Afriq 24 Month Projection

Coin Afriq Year 5 $60M ARR Projection

Addressing Africa’s Unique Needs

Traditional financial systems in Africa often present significant barriers, including high transaction costs, limited access to banking services, and susceptibility to inflationary pressures. Blockchain technology offers a powerful antidote to these challenges, enabling transparent, secure, and efficient peer-to-peer transactions. However, widespread adoption still faces hurdles such as internet access, digital literacy, and regulatory clarity.

Coin Afriq recognizes these complexities and is committed to building a platform that is not only technologically advanced but also culturally relevant and user-friendly for the average African. Our emphasis on affordability and decentralization directly tackles the issues of cost and control, putting financial power back into the hands of individuals.

The Gold Standard: A Vision for Stability

Perhaps one of Coin Afriq’s most distinctive long-term strategies is our vision to peg our cryptocurrency against gold. In a market often characterized by volatility, a gold-backed digital asset offers a compelling proposition:

• Stability: Pegging to gold can provide a stable store of value, reducing the dramatic price swings often associated with unbacked cryptocurrencies. This can build greater trust and encourage wider adoption, particularly for those seeking a reliable asset in uncertain economic times.
• Trust and Tangibility: Gold has been a universal symbol of value for millennia. Tying our coin to a tangible asset like gold can offer a psychological anchor for users, bridging the gap between traditional asset understanding and the digital frontier.
• Inflation Hedge: Like physical gold, a gold-backed cryptocurrency can act as a hedge against inflation, protecting purchasing power in economies susceptible to currency depreciation.
• Accessibility: Owning fractional amounts of gold through a digital token eliminates the complexities and costs associated with storing physical gold, making this valuable asset accessible to a much wider demographic.

While challenges exist in managing physical gold reserves and ensuring transparency, we are committed to implementing robust auditing and security measures to uphold the integrity of our gold peg.

The Path Forward: Pre-Seed Funding and Beyond

Coin Afriq is currently in its pre-seed funding round. We are seeking a minimum of $300,000 in exchange for 5% equity, which aligns with our pre-money valuation of $5.675 million (calculated using the Scorecard Method).

We are actively engaging with investors who share our vision and are open to higher offers that will enable us to accelerate our development and market penetration.

This initial capital will be strategically deployed to:

• Accelerate Platform Development: Investing in core blockchain infrastructure and user-friendly applications.
• Expand Our Team: Bringing in top talent in blockchain development, product management, and community engagement.
• Community Building & Education: Launching initiatives to onboard users and educate them on the benefits and safe use of cryptocurrency.
• Regulatory Engagement: Proactively working with regulatory bodies across Africa to foster a supportive environment for our innovation.

Coin Afriq Budget Breakdown

Conclusion

Coin Afriq is more than just a startup; it’s a movement towards financial empowerment and digital inclusion for an entire continent. We invite investors, partners, and the African community to join us in building a future where everyone can thrive in the digital economy.