SEC sends strong warning about Davido ‘meme coin’

The Securities and Exchange Commission have issued a strong warning to Nigerians against investing in the ‘meme coin’ allegedly linked to popular Nigerian Afrobeat singer, Davido.

It would be recalled that Davido, on May 29 unveiled a meme coin called $Davido via his social media handles.

Meme coins are cryptocurrencies inspired by memes and internet jokes. They are often promoted through a social media community and sometimes through celebrity endorsements.

Citing the crypto platform as a “risk”, the commission in a statement posted on its website on Friday, warned the general public to desist from patronizing the platform.

“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 patronize it, do so at their peril,” SEC warned.

The commission noted that it will keep a close watch on market developments and is ready to step in with regulatory action when necessary.

“The Commission will continue to monitor developments within the ecosystem and will not relent in deploying its regulatory powers as and when required”, SEC assured.