🌍 Nigeria's economic revival begins

All Things Flooz newsletter is for innovators, creators and traders.

Flooz

7 min read Jun 23, 2023


Talking points

  • 🌍 Nigeria begin economic overhaul

  • 🚨 Argentina inflation explodes

  • 🤖 ChatGPT data breach

As we approach the half way mark of the year, take some time to reflect on your journey so far.

👀 Quick market outlook

What a rollercoaster of a week so far… We have seen Bitcoin and the markets falling within the last 14 days and below $25K and now we have just hit $31K for the first time in a year!

So, with that being said… what is next on the agenda for Bitcoin and the crypto market?

Interesting thoughts here. It seems as though an new All-Time-High could be on the cards in 2023 according to the above. Is that possible?

Who knows…

But many certainly didn’t expect to see the drop below $16K last year or the rise to $31K this week either. There is always a chance. However, there was one more warning that seemed vital to mention 👇

It seems that Alts may not be the best to jump into currently and if so, should only be short term. This is based on historical data and the fact that the narrative and dominance is entirely on Bitcoin.

This could lead to some alts struggling and may hurt your portfolio as a result. But as always, there are no certainties and this should just help to give you an idea of what could happen. Remember to stick to your plan and only invest what you can afford to lose.

Done reflecting? Awesome, let’s look at the highlights!

🌍 Nigeria’s economic revival begins

Nigeria has been attempting to transform recent hits with a series of dynamic measures aimed at reshaping the nation's economy.

President Tinubu's administration in Nigeria wasted no time in implementing bold economic reforms, aiming to revitalize the country's struggling economy. In his inaugural speech, Tinubu didn't shy away from criticizing the central bank, emphasizing the need for a thorough house-cleaning in monetary policy. Responding to this call, the Central Bank of Nigeria (CBN) announced the unification of the foreign exchange (FX) market, replacing the multiple exchange rate "windows" with a market rate.

The immediate consequence of this move was a significant devaluation of the naira, with a 36% drop against the dollar on the official market. Tinubu's suspension of Godwin Emefiele, the CBN governor, further demonstrated his hands-on approach to monetary policy. The president's actions were seen as the final blow to the independence of monetary policy, signalling a new era of direct intervention.

Investors welcomed these measures, perceiving them as a commitment to resetting the economy on a more orthodox path. The stock market responded with a surge, reaching its highest level in 15 years. Market capitalization rose, reflecting the increased value of listed companies.

The unification of exchange rates is expected to boost investor confidence and attract foreign direct investment, which has been dwindling in recent years. Nigeria has struggled to attract FDI due to severe dollar shortages and restrictions on repatriating funds. Unifying exchange rates should alleviate these problems and improve the ease of doing business in the country.

Naira to USD currency correlation

However, concerns remain about the potential impact on the cost of living. The devaluation of the Naira and the removal of subsidies may lead to a squeeze on consumers. The increased cost of transportation and goods and services could put significant pressure on the population and potentially lead to social unrest.

Despite the positive market response, questions arise regarding the sustainability of President Tinubu's fiscal policies. While removing fuel subsidies creates a fiscal saving, it is unclear whether the resources will be saved or spent on public infrastructure, education, healthcare, and jobs. Rising debt-to-GDP ratios and the possibility of borrowing from the central bank raise concerns about the long-term effectiveness of these policies.

While the unification of exchange rates and the removal of subsidies have positive implications for attracting investment, managing inflation and debt will require careful attention. The road to economic recovery in Nigeria promises both opportunities and challenges as the nation undergoes these significant transformations.

🚨 Argentina inflation explodes

In the midst of Argentina's financial crisis, an unexpected and delightful trend is emerging in the cosmopolitan capital of Buenos Aires.

The city's culinary scene is experiencing a vibrant renaissance, attracting food enthusiasts and igniting a restaurant boom. While the nation grapples with soaring inflation rates and economic instability, Buenos Aires' residents are seeking solace and pleasure in the city's flourishing dining experiences.

As Argentina prepares for its upcoming elections, the country faces a daunting economic backdrop. With an annual inflation rate of 114% which is the fourth highest in the world… and a rising number of people unable to afford basic necessities, the electorate's primary concern is the economy. The dire state of affairs is pushing voters to favour candidates who offer radical solutions to the nation's economic malaise. With 20 candidates vying for the presidency, the election outcome remains highly unpredictable.

Surprisingly, the restaurant industry is thriving amidst Argentina's economic turmoil. Argentines are eager to part ways with their depreciating currency, prompting the middle and upper classes to dine out more frequently. Consequently, restaurateurs and chefs are reinvesting their revenues to open new establishments. For them, crises present opportunities to showcase their culinary expertise and offer respite to a society struggling with economic hardship.

While the culinary boom paints a picture of a city enjoying the present, the reality is far more complex. Many Argentines are grappling with financial hardship and an increase in hunger. The rush to dine out among wealthier circles represents a shrinking middle class's attempt to saver the moment, unsure of what the future holds or if their money will retain its value. Inequality remains a pressing issue in Buenos Aires, with pockets of affluence coexisting with struggling neighbourhoods.

One area that is surprising is the declining interest rates. Usually, as inflation rises, so does interest rates. It seems Argentina are remarkably correlating in opposite directions. For citizens of Argentina, this is a good thing financially, but for the economy, this could lead to further damage to their currency.

The city's efforts to promote its culinary scene have yielded impressive results. Tracking restaurant attendance since 2015, Buenos Aires has observed a surge in dining out experiences. April's statistics indicate that restaurant attendance is at its highest level since tracking began, surpassing even the pre-pandemic peak of 2019. Notably, under-the-radar residential areas have transformed into foodie hotspots, attracting influencers and subsequently drawing crowds of eager diners.

For the middle class, larger expenditures like vacations or cars have become unattainable luxuries. Instead, they seek solace and enjoyment through gastronomic indulgence. Dining out allows them to momentarily escape economic uncertainties and relish the city's vibrant culinary offerings. Even lower-income gig workers, despite facing reduced earnings, prioritise dining out before further devaluation of their income.

Buenos Aires' culinary revival serves as a captivating juxtaposition to Argentina's economic turmoil. While the nation battles inflation and economic instability, its residents find comfort and pleasure in the city's flourishing restaurant scene.

As the nation prepares for a crucial election, it remains to be seen how the economy will evolve and how Buenos Aires' culinary landscape will continue to captivate and provide solace to its residents.

🤖 ChatGPT data breach

You’ve heard of ChatGPT, right? Well… if you are a user, you may want to double check your log in details and change them immediately as it seems there has been MAJOR breaches. Over the past year, a staggering 100,000 login credentials for the beloved artificial intelligence chatbot, ChatGPT, have been leaked and traded on the dark web. Yes, you heard it right!

According to the renowned Singaporean cybersecurity firm, Group-IB, a mind-boggling number of compromised logins have been circulating on shady online marketplaces. Their recent blog post, dated June 20, disclosed the shocking figures. Between June 2022 and May 2023, precisely 101,000 devices containing compromised ChatGPT logins were up for grabs on the dark web.

Dmitry Shestakov, Group-IB's head of threat intelligence, provided further insight, revealing that each login contained at least one set of credentials for ChatGPT. The month of May 2023 witnessed a peak, with a staggering 27,000 ChatGPT-related credentials flooding the black markets of the web.

Now, let's dive into the global arena of compromised logins.

The Asia-Pacific region dominated the scene, with a whopping 40% of the total compromised logins up for sale. Leading the pack, the credentials from India secured the top spot with over 12,500 compromised accounts. Not far behind, the United States claimed the sixth position, with nearly 3,000 leaked logins. And let's not forget France, which triumphed as the European leader in this unfortunate race.

It's worth noting that ChatGPT accounts can be created directly through OpenAI, or users can opt to use their Google, Microsoft, or Apple accounts for authentication. Although Group-IB didn't delve into the specifics of sign-up methods, Shestakov suggested that accounts utilizing direct authentication might have been the primary targets.

However, OpenAI is not at fault for this breach, as Shestakov clarified, "The identified logs containing saved ChatGPT credentials is not a result of any weaknesses of ChatGPT's infrastructure."

Google’s parent company Alphabet who has their own AI called ‘Bard’ suggested that users do not enter sensitive information into these system just in case there are breaches as it will put them at further risk. They have even added this into their employees policy 👀

Group-IB's blog post also shed light on a concerning trend: the growing number of employees using ChatGPT for work purposes. As a word of caution, the firm warned that confidential company information could be exposed to unauthorized users, as user queries and chat history are stored by default.

This could potentially lead to targeted attacks against companies or individual employees. To make matters worse, cybercriminals managed to infect "thousands of individual user devices worldwide" in their quest to pilfer this valuable data.

To add an intriguing tidbit to pique your curiosity: Group-IB proudly mentioned that their press release was penned with the assistance of none other than ChatGPT itself. We truly are embracing the use of AI…

In light of these revelations, it's crucial to emphasise the importance of regular software updates and implementing two-factor authentication as a line of defense – remember, staying one step ahead of cybercriminals is the key to safeguarding our digital lives.

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