SEC Warns Nigerians Investing In $Davido Coin

Are you among investors seeking to buy into Davido’s cryptocurrency, $Davido Coin? If so, the Securities and Exchange Commission (SEC) has a word for you.

It says you are doing so wholly at your risk.

The SEC, major regulator of the Nigerian capital market, warns that the digital asset poses significant financial risks to investors.

Stating its position in a statement, the SEC said that $Davido coin does not fall under its regulatory oversight as an investment product or a recognized asset class, it would not advice investors to do deals with the firm.

“The attention of the Securities and Exchange Commission, Nigeria (“SEC”) has been drawn to a meme coin known as “$Davido” allegedly linked to the popular Nigerian singer, David Adedeji Adeleke AKA Davido,” the statement reads.

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“Generally, meme coins are cryptocurrencies inspired by memes and internet jokes. They are often envisaged as a fun, light-hearted cryptocurrencies promoted through a social media community and sometimes through celebrity endorsements.

“Meme coins are also NOT intended to serve as a medium of exchange accepted by the public as payment for goods and services, or as 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.

“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.

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’The Eagle reports that the mega Nigerian star, add fillip to his soaring image recently, launching a cryptocurrency trading platform: $Davido coin, with his fans applauding.

The platform which was floated in collaboration with with Phantom and Solana, soared almost immediately.