The Securities and Exchange Commission (SEC) has warned Nigerians highlighting the high risks associated with investing in meme coins, including the cryptocurrency "$davido". In a circular dated June 14, 2024, the SEC noted that meme coins, inspired by internet memes and often promoted via social media and celebrity endorsements, are speculative investments lacking fundamental value.
The
circular clarified that such coins are not intended as mediums of exchange for
goods and services, nor do they represent traditional capital market products
like shares or derivatives. The SEC emphasized that these assets fall outside
its regulatory oversight, cautioning capital market operators against
associating with them.
Furthermore,
the SEC stated unequivocally that "$davido" is not recognized as an
investment product or asset class under its purview. Investors were strongly
advised to exercise caution, as investing in meme coins carries significant
financial risks.
"We
advise the general public to fully understand the risks involved before
engaging in any transactions involving meme coins," the SEC concluded in
its advisory.
Post a Comment