The Securities and Exchange Commission (SEC) in Nigeria has issued a stern warning against investing in Punisher Coin, also known as $PUN, a type of meme coin that hasn’t been registered or approved for public issuance in the country.
According to the SEC, the promoters or issuers of $PUN are not authorized to operate in Nigeria’s capital market.
Key Concerns
-Lack of Registration: $PUN is not registered with the SEC, making it an unregulated investment.
– Meme Coin Risks: Meme coins often lack tangible utility, intrinsic value, or supporting projects, and their value is driven by hype and social media buzz, making them prone to market manipulation.
– Pump and Dump Schemes: These schemes involve promoters artificially inflating the price of a coin through misleading claims, only to sell off their holdings at the peak, leaving retail investors with losses.
The SEC’s warning is part of its efforts to protect investors from fraudulent and unregulated investment opportunities in Nigeria’s digital asset space.
The Commission urges investors to verify the registration status of any investment offering, especially crypto assets, through its official channels.
The SEC has been cracking down on illicit activities, including Ponzi schemes and pump-and-dump tokens. Director-General Emomotimi Agama has warned Nigerian celebrities against promoting unauthorized meme coins, citing the Investments and Securities Act 2025. The Act establishes clear rules and regulations for digital asset platforms, including registration requirements to promote transparency and trust.
The SEC had previously warned about the risks associated with meme coins, including those linked to popular Nigerian singer Davido.
Investors are cautioned to exercise diligence and caution when dealing with digital currencies.
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