SEC warns investors about risks of investing in Davido’s meme coin

The Nigeria Securities and Exchange Commission, often known as Davido, is associated with the famed Nigerian artist David Adeleke. The SEC has advised prospective investors to stay away from this cryptocurrency.

Because meme currencies are entirely speculative and lack intrinsic value, the SEC declared that investing in $Davido’s coin was dangerous.

The SEC management announced in a statement on Friday that it does not recognise the currency.

The announcement says as follows: “A meme coin called $Davido, purportedly associated with prominent Nigerian artist David Adedeji Adeleke, also known as Davido, has caught the attention of the Securities and Exchange Commission, Nigeria (“SEC”).

Meme coins are typically digital currencies that draw inspiration from online jokes and memes. Frequently, they are perceived as enjoyable, whimsical digital currencies that are pushed via social media networks and occasionally by well-known personalities.

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Additionally, meme coins are NOT meant to be used as a digital representation of capital market products like shares, debentures, units of collective investment schemes, derivatives contracts, commodities, or other types of financial instruments or investments, nor are they meant to be used as a publicly recognised medium of exchange for goods and services.

The general public is hereby informed that meme coins are entirely speculative and have no real worth. Additionally, the general public is WARNED that investing in meme coins, such as $Davido, carries a significant level of risk and should only be undertaken after careful consideration of all relevant risks.

This notice serves as a warning to capital market operators not to associate with securities that are not subject to SEC regulation. Under no circumstances may these instruments be distributed or overseen by capital market mechanisms.

Please take note that the Commission does not recognise $Davido as an investable asset class or investment product under its regulatory scope, and as such, users use it at their own risk.

“The Commission will not back down from using its regulatory powers when and when needed, and it will keep an eye on developments within the ecosystem.”