National Telescope national telescope newspaper
By Funmi Ojo
The Securities and Exchange Commission (SEC) has warned the public against investing in a meme coin allegedly associated with David Adeleke, popularly known as Davido.
In a statement on its website, the SEC advised that those who invest in this meme coin do so at their own risk.
The statement read, “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 risks.”
The SEC cautioned capital market operators to avoid dealing with instruments beyond the commission’s regulatory scope.
“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 be distributed or monitored through any capital market mechanism,” the statement added.
The commission reiterated that it does not recognise $Davido as a legitimate investment product.
“Please note that the commission does not recognise $Davido as an investment product or investable asset class under its regulatory purview. Individuals who patronise it do so at their peril.”
The SEC assured the public that it would continue to monitor market developments and intervene with regulatory actions when necessary.
“Meme coins are cryptocurrencies inspired by memes and internet jokes,” the commission explained.
“They are often envisaged as fun, light-hearted cryptocurrencies promoted through a social media community and sometimes through celebrity endorsements.
Meme coins 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.”
Davido introduced the meme coin called $Davido on Wednesday, May 29, 2024.
However, the coin has faced criticism from Nigerians after its value plummeted just a day after its launch.
