Vella Finance's Decision to Drop Crypto Services
Vella Finance, a Nigerian fintech startup, has recently announced that it will no longer offer crypto-related services starting on October 30. The company's co-founder, Tolu Adedayo, stated that providing both crypto and banking services simultaneously is not feasible, leading to the decision to drop crypto services and instead focus on serving small and medium-sized businesses with banking solutions.
Reasons Behind the Pivot
In a recent report by Techcabal, Vella Finance informed its users and subscribers about the discontinuation of crypto-related services. Adedayo explained that the startup has decided to pivot away from crypto in order to fully concentrate on SME banking. Adedayo stated, "Banking requires playing in regulatory confines. We already serve businesses from the onset backed by user and transactional data. It just makes sense to offer an end-to-end banking system to better serve them."
According to Adedayo, offering both cryptocurrency and banking services simultaneously is not practical. Therefore, the company has chosen to focus solely on providing comprehensive banking solutions for small and medium-sized enterprises.
Nigeria's Growing Interest in Crypto
Vella Finance's decision to drop crypto-related services comes at a time when interest in digital assets, such as bitcoin and tether, appears to be on the rise. Nigeria is among the six countries in the world's top 50 where crypto transaction volume has grown year-over-year, according to a recent Chainalysis report. Additionally, the rapid depreciation of Nigeria's local currency is said to be fueling the interest in crypto assets.
Future Plans for Vella Finance
Despite discontinuing its crypto services, Vella Finance has plans to introduce new features that will strengthen its position in the business banking space. The company aims to solidify its full entrance into the SME banking sector and enhance its offerings to better serve its customers.
What are your thoughts on Vella Finance's decision to drop crypto services and focus on SME banking? Share your opinions in the comments section below.
Frequently Asked Questions
What are the pros and cons of a gold IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. There are some disadvantages to this investment.
You could lose all of your accumulated money if you take out too much from your IRA. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
If you prefer your money to be kept out of a bank, then you will need insurance. Most insurers require you to own a minimum amount of gold before making a claim. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit how many ounces you can keep. Some providers allow you to choose your weight.
You will also have to decide whether to purchase futures or physical gold. Futures contracts for gold are less expensive than physical gold. Futures contracts provide flexibility for purchasing gold. You can set up futures contracts with a fixed expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does offer coverage for natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must retain them for as long and as you require.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. It is also important to specify how much money you will invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. The company will then review your application and mail you a letter of confirmation.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner can help you decide the type of IRA that is right for your needs. They can help you find cheaper insurance options to lower your costs.
Can I hold a gold ETF in a Roth IRA?
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
An IRA traditional allows both employees and employers to contribute. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
Also available is an Individual Retirement Annuity. An IRA allows for you to make regular income payments during your life. Contributions to IRAs don't have to be taxable
How much should your IRA include precious metals
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don’t need to have a lot of money to invest. There are many methods to make money off of silver and gold investments.
You might consider purchasing physical coins, such as bullion bars and rounds. Also, you could buy shares in companies producing precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Even though they aren't stocks, they still offer the possibility of long-term growth.
And, unlike traditional investments, their prices tend to rise over time. If you decide to sell your investment, you will likely make more than with traditional investments.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
bbb.org
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not legal – WSJ
investopedia.com
irs.gov
How To
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. You must contribute enough each year to ensure that you have adequate growth.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles allow you to make contributions without paying taxes on earnings until they are withdrawn from the account. This makes them a great choice for people who don’t have access employer matching funds.
It's important to save regularly and over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
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