Ex-Kenya prime minister duped in deepfake cryptocurrency promotional scheme
The Kenya Token, marketed as the official digital token of Kenya and linked to a promotional endorsement from former Prime Minister Raila Odinga, has sparked controversy and raised concerns about its legitimacy. The creators of the token, which appear to be anonymous, launched a website on Thursday, promising staking opportunities and describing the token as a tool for civic participation and a way for citizens to "buy into Kenyan heritage."
However, the Kenya Token, represented by the symbol $KENYA, is separate and distinct from the legitimate Kenya Digital Token ($KDT) launched by the Kenyan government and managed as a decentralized national digital token on the Solana blockchain. The Kenya Token, which had no history before September 17, has been labelled a scam by several critics, who point out that it has no formal launch or contract address, and its developers remain anonymous.
On September 18, Odinga's account posted a promotion for the Kenya Token, but the post was quickly deleted and is suspected to not have originated from the former prime minister. Critics are divided about the post's true origins, with some suggesting it was a fabrication.
Despite the controversy, the adoption of the Kenya Token remains limited, according to checks on Solscan. As of now, there is no contract address for the Kenya Token, and adoption cannot be tracked. The project's Telegram channel currently has about 1,620 members.
The Kenya Digital Token, on the other hand, was launched on July 11 and is described as a non-investment project in its white paper. Users can earn Kenya Digital Tokens by participating in community activities, and the tokens can also be purchased in open markets on decentralized exchanges (DEXs).
The launch of the Kenya Digital Token did not include a white paper or pre-sale, which has raised questions about its transparency. However, the Kenyan government has proposed a 10% excise duty on crypto transactions and announced plans to monitor trading activity for taxation. The Virtual Asset Service Providers (VASP) Bill, which aims to regulate the crypto sector more broadly, is scheduled for its second reading on September 23.
In 2024, high-yield investment promises were one of the most common tactics to lure victims in crypto scams, according to a report from analysis firm Chainalysis. With the Kenya Token promising staking opportunities and positioning itself as a tool for civic participation, some are warning potential investors to exercise caution.
As the crypto landscape in Kenya continues to evolve, it is important for investors to do their due diligence and thoroughly research any investment opportunities before committing their funds. The Kenya Digital Token, while legitimate, and the Kenya Token, which is shrouded in controversy, serve as examples of the need for transparency and regulation in the crypto sector.
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