SEC Warns: Beware of Davido-Linked Meme Coin Investment Scam
SEC Warns Against Davido-Linked Meme Coin Investment Scam: The Securities and Exchange Commission cautions the public against investing in the meme coin associated with Davido, stating it lacks fundamental value and is highly risky. The commission warns that investing in meme coins, including $Davido, is done at one's own risk and will not hesitate to intervene with regulations as necessary.
The public has been cautioned by the Securities and Exchange Commission not to invest in the meme coin that is purportedly associated with David Adeleke, better known by his stage name, Davido.
The SEC cautioned anyone who uses the meme coin to do so at their own risk in a statement that was made public on its website.
“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,” the statement read.
The SEC stated that it will closely monitor market developments and is prepared to intervene with regulations as necessary.
The panel went on to say, “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 a 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.”
On Wednesday, May 29, 2024, the musician announced $Davido, a meme cryptocurrency.
The meme coin's fleeting popularity was quickly replaced with widespread scorn and criticism from Nigerians, as its value plummeted just one day after its introduction.
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