On Friday, the Securities and Exchange Commission (SEC) warned Nigerians against investing in the meme coin, which is allegedly owned by Nigerian singer David Adeleke, popularly known as Davido.
The commission gave the warning in a statement posted on its website today (Friday).
Recall that the Afrobeat star unveiled a meme coin called $Davido on Wednesday, May 29, 2024.
According to the statement, the SEC warned that anyone who flaunted the warning to patronise the meme coin is doing so at their own peril.
The SEC further noted that it does not recognise Davido’s coin as an investment product or investable asset.
The statement reads, “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.
“Please note that the commission does not recognise $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronise it do so at their peril.”
News About Nigeria gathered that meme coins are cryptocurrencies that are inspired by memes and internet jokes and are often promoted through a social media community and celebrity endorsements.
The coins, according to the SEC, “are not intended to serve as a medium of exchange accepted by the public as payment for goods and services or as a digital representation of capital market products such as shares, debentures, units of collective investment schemes, derivatives contracts, commodities, or other kinds of financial instruments or investments.”
