By Lukman Otunuga Stocks in Asia traded cautiously on Tuesday, following a negative close on Wall Street overnight as growth concerns, inflation worries and geopolitical tensions hit risk sentiment. European markets opened lower this morning due to the deepening crisis in Ukraine, with the caution likely to find its way back to US markets this […]
Micro pension inclusion: Awabah partners with Stanbic IBTC Pension Managers
Awabah, Nigeria’s first digital micro pension platform, has formed a strategic alliance with Stanbic IBTC Pension Managers to deepen micro pension inclusion across Nigeria. The announcement, made via Awabah’s social media handles, showed how excited the PensionTech startup was about joining forces with a leading Pension Fund Administrator (PFA) in the country.
Speaking on the partnership, Tunji Andrews, Co-Founder, and CEO of Awabah said that this partnership has raised the stakes for Awabah as the company is set to onboard 150,000 new users in the next 12 months and is targeting 5 million customers by 2026.
He said, “The goal is to have 5 million micro pension accounts with active contributions made via Awabah’s platforms by the time it turns 5”. He went on to say that although funding retirement savings accounts was quite a task, Awabah was ready to do the hard work, and had put strategies in place to achieve this goal. One such strategy is the creation of agent networks to onboard new users, and another is leveraging trade shows to drive awareness.
Nineteen (19) PFAs registered 2,166 contributors during the fourth quarter of 2021. This brought the total number of Micro Pension contributors to 73,600. According to information from the National Pension Commission, similarly, the sum of N25,094,874.26 was credited into the RSAs of 8,260 MPP Contributors in Q4 2021, bringing the total value of the Micro Pension Fund to N224,054,870.69 as at end of the quarter under review. While these figures are small compared to the size of the market, with dedicated initiatives like those provided by Awabah in partnership with PFAs, it is expected that more informal workers will be enrolled into the scheme.
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Pantera Capital cashed out 80% of investment in Terra Labs before LUNA and UST crash
Pantera Capital, one of the high-profile investors in Terraform Labs, said it cashed out nearly 80% of its Terra (LUNA) investment well before TerraUSD (UST) collapse we saw last week, which took away over $40 billion in market capitalization away.
Joey Krug, co-chief investment officer at Pantera Capital, told The Block that, “The market has been fairly frothy over the last year and thus we’d exited the majority of our position before any of this happened. Roughly 80% over the last year, fairly gradually over time.”
Pantera Capital invested at least twice in Terraform Labs, once backing its $25 million round in January 2021 and then joining its $150 million ecosystem fund round in July 2021. Joey Krug clarified that Pantera’s LUNA investments were separate from its investments in Terraform Labs and took place in the summer of 2020 after LUNA’s market debut.
What you should know
Joey further stated, “We managed that position down over time as it became increasingly profitable/large, in order to maintain a diversified portfolio. We initially invested in LUNA because of the progress we saw in developer adoption, the payments usage, and the broader ecosystem being built on Terra.”
- Since Pantera exited most of its investment early on, it generated a significant profit, according to Joey. Paul Veradittakit, a partner at Pantera Capital, told The Block that the venture capital firm turned $1.7 million investment into approximately $170 million.
- Meanwhile, other venture capital firms that backed Terraform are reeling under losses since Terra’s native LUNA token has lost almost its entire value due to the UST crash.
- An example will be Binance. According to a tweet thread by its CEO, Changpeng Zhao, the global exchange owned 15 million units of LUNA worth $1.6 billion at LUNA’s peak price but that investment is now worth $3,000.
The UST algorithmic stablecoin de-pegged sharply last week to levels below 10 cents, far from its target price of $1. It is still trading at that level as of the time of this writing. Meanwhile, LUNA is currently trading at a fraction of a cent, from approximately $120 from its all-time high it hit last month.
When Pantera noticed UST’s de-pegging last week, it sold more of its LUNA holdings from the remaining 20% investment. Joey explained, “We got out of 2/3 of that at an average price of $25.6. The remainder of that was staked via LUNAX and so unable to be sold.” LunaX is a liquid staking token by Stader Labs.
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