The Securities and Exchange Commission, Nigeria, SEC, has warned Nigerians not to invest in $Davido Meme Coins.
According to the Commission, the warning is important due to the non recognition of Meme Coins, known as “$Davido”,
According to the report, the coin has been linked to popular Nigerian singer, David Adeleke, known as Davido.
SEC stated that the investment product or investable asset class is under its regulatory purview.
This was contained in a statement on SEC website on Friday. The Commission warned Nigerians against investing in the meme coins.
SEC, therefore, warned that individuals who invested in coin did so at their own risk.
The statement read, “Generally, meme coins are cryptocurrencies inspired by memes and internet jokes.
“They are often envisaged as a fun, light-hearted cryptocurrencies promoted through a social media community. And sometimes through celebrity endorsements.”
The Commission maintained that, meme coins are not intended to serve as a medium of exchange. Therefore, they are not accepted by the public as payment for goods and services or as digital representation of capital market products.
SEC listed such capital market products to include; shares, debentures and units of collective investment schemes. Others it stated are derivatives contracts, commodities or other kinds of financial instruments or investments.
The Commission said “The general public is hereby advised that meme coins lack fundamental value and are purely speculative.
“The general public is further warned that investing in meme coins, including $Davido, is highly risky. And should be done with a full understanding of the associated risk.
“Capital market operators are by this notice warned not to associate with instruments that fall outside the SEC’s regulatory purview.
“Such instruments should not in any manner be distributed or monitored through any capital market mechanism.
SEC maintained that it would continue to monitor developments within the ecosystem. The Commission also stated that it and would not hesitate to deploy its regulatory powers as needed.
source: NAN
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