The Securities and Exchange Commission (SEC) has issued a warning to Nigerians about investing in the meme coin reportedly linked to Nigerian singer David Adedeji Adeleke, widely known as Davido. The SEC clarified that anyone investing in this or similar coins does so at their own risk.
The alert was posted on the SEC’s website on Friday. The Commission emphasized that $Davido coin is not recognized as an investment product or asset class under its regulatory guidelines.
Here’s the full statement from the SEC:
“The Securities and Exchange Commission, Nigeria (SEC), has been informed about a meme coin named ‘$Davido,’ allegedly associated with the Nigerian artist David Adedeji Adeleke, also known as Davido.
Meme coins are cryptocurrencies created based on memes or internet jokes. They are often promoted through social media communities and celebrity endorsements, intended to be fun and light-hearted. These coins are NOT meant to be used as a medium of exchange for goods and services or as digital representations of capital market products like shares, debentures, collective investment scheme units, derivatives, commodities, or other financial instruments.
The public is HEREBY ADVISED that meme coins lack intrinsic value and are purely speculative. Investing in meme coins, including $Davido, is highly risky and should only be done with a thorough understanding of the associated risks.
Capital Market Operators are cautioned against engaging with instruments outside the SEC’s regulatory framework. These instruments should not be distributed or monitored through any capital market mechanisms.
PLEASE NOTE that the SEC does not recognize $Davido as an investment product or asset class under its jurisdiction. Therefore, individuals who invest in it do so at their own risk.
The Commission will keep a close watch on developments in the ecosystem and will use its regulatory powers as needed.”
