All you need to know about Akon City, the $6 billion crypto metropolis in Senegal

The project is reportedly being funded by Akon and a group of investors and is intended to serve as a hub for innovation, tourism, and economic development in the region. Akon unveiled his plans to develop this futuristic city back in 2018, with a proposed budget of $6 billion.

The proposed metropolis will also use a cryptocurrency called Akoin (AKN), which is supposed to be the main component through which citizens will engage in transactions. It is built on the Stellar Lumens ecosystem and is designed to be a pan-African currency. It will function as a utility token while also serving as an ecosystem of tools and services designed for entrepreneurs.

The coin is backed by a multi-currency wallet and decentralised exchange. This allows users to store and trade AKN without facing the hurdles or fees of traditional money exchanges. Token holders will be able to convert their AKN into fiat currencies or purchase talk time for their mobiles. The token is currently listed on BitMart and can be purchased using major cryptocurrencies such as stellar, bitcoin, ether, or with a credit or debit card.

Akon City will feature luxury houses, healthcare services, skyscrapers, eco-friendly tourist places, state-of-the-art offices and much more. Not only that but the entire city will also be powered by sustainable energy resources. The city will also serve as a haven for the native flora and fauna found in Africa, with manmade forests covering the city and enhancing its beauty in many ways. In short, the project is truly ambitious and the fact that such a futuristic development will take place in Africa is even more appealing to the world.

While Akon City was met with great fervour among locals, there hasn’t been much progress since the R&B artist unveiled the project in September 2020. A BBC report describes the project as a “crumbling crypto dream.” It says that the land upon which a burgeoning city was to be built is currently home to grazing goats. When questioned, Akon cited the pandemic as the main cause of the delay.

As for Akoin, the cryptocurrency has been met with its own set of difficulties. According to CoinMarketCap data, AKN hovered around the $0.14 range after being launched in 2020. The coin then saw a tremendous spike in February 2021, when it rallied to its all-time high of $0.5069. However, things went completely downhill once the crypto winter hit in 2022. The difficult bear market caused the valuation of AKN to tank. The coin is currently trading at $0.017, an 88 percent decrease since its launch.

Moreover, there are some teething issues over the legality of cryptocurrencies in Senegal. For now, the only legal tender in the nation is the CFC Franc. It is issued and regulated by the Central Bank of West African States (BCEAO). According to an article by Yahoo Finance, the BCEAO raised concerns over digital assets, warning institutions of the “dangers of adopting cryptocurrencies” and terming them as “illegal." This could be a huge issue for Akon City and its proposed currency Akoin.

Akon has assured stakeholders that the project is still a go and that the dream is alive and kicking. According to him, the pandemic has only delayed everything by two years. On the question of using crypto in Senegalese jurisdiction, the artist responded by saying that he will make sure that all the necessary legalities conform with the rules and regulations of the government. Akon went on to state that development was "100,000 percent moving" and said that he was looking forward to retiring in the city of his creation.

Akon City is an ambitious project. If it does come to fruition, it will play a key role in driving the economy of Senegal and improving the lives of its citizens. However, as things stand currently, there is no telling when the project will be completed, or if it ever will be.