Investing in Davido’s coin is highly ri§ky — SEC warns Nigerians

The Securities and Exchange Commission (SEC) has warned Nigerians against investing in the meme coin recently launched by singer David Adeleke better known as Davido.

Recall that the 31-year-old musician launched $Davido, a new cryptocurrency coin, in collaboration with Phantom and Solana on May 29, 2024.

The coin gained rapid popularity initially, attracting early investors who reportedly made profits.

However, shortly after its launch, $Davido experienced a sharp decline in value, resulting in substantial losses for many investors.

Responding to these developments, the SEC released a statement asserting that $Davido does not fall under its regulatory oversight as an investment product or a recognized asset class.

The commission emphasized that individuals who choose to invest in the meme coin do so at their own risk.

“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.

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.

PLEASE NOTE that the Commission does not recognize $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronize it, do so at their peril,” the statement reads in part.


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