The Securities and Change Fee (SEC) has issued a stern warning to the Nigerian public relating to the continuing unauthorized presale of a cryptocurrency known as Punisher Coin, also called $PUN.
The Fee, in a public discover printed on its web site, disclosed that Punisher Coin is being marketed by means of numerous on-line platforms regardless of not being registered or accepted for public issuance in Nigeria.
“The promoters or issuers of ‘Punisher Coin’ aka ‘$PUN’ are NOT REGISTERED to function in any capability within the Nigerian Capital Market,” the SEC acknowledged.
Preliminary investigations
In response to preliminary investigations by the Fee, $PUN is classed as a meme coin, a class of digital belongings usually recognized for his or her lack of tangible utility, intrinsic worth, or supporting initiatives.
- The worth of such cash is usually pushed by hype, social media buzz, and promotional actions, making them particularly susceptible to market manipulation.
- The Fee famous that meme cash like $PUN are regularly related to pump and dump schemes.
- These schemes contain promoters artificially inflating the worth of a coin by means of deceptive or exaggerated claims, solely to unload their holdings as soon as the worth peaks, leaving retail traders with steep losses as soon as the hype dies down.
“Any one that invests within the scheme does so at his/her personal danger,” the SEC warned.
The SEC’s advisory serves as a part of its broader efforts to guard traders from fraudulent and unregulated funding alternatives inside Nigeria’s fast-growing digital asset area. The Fee urged members of the general public to confirm the registration standing of any funding providing, particularly these involving crypto belongings, by means of its official channels.
What you need to know
This newest alert comes amid rising issues over the proliferation of doubtful digital currencies and platforms working outdoors the regulatory framework.
- The Director-Common of SEC, Emomotimi Agama, had not too long ago issued a stern warning to Nigerian celebrities to cease selling unauthorised meme cash, citing the provisions of the Investments and Securities Act 2025 not too long ago signed by President Bola Tinubu.
- Agama mentioned the Act has established clear guidelines and rules for digital asset platforms, together with registration necessities to advertise transparency and belief.
- He mentioned the registration permits the SEC to crack down on illicit actions, akin to Ponzi schemes, pump and dump tokens, and unregistered exchanges, making a safer surroundings for traders.
“It is crucial that even for celebrities, we have to be cautious about what we do. Changing into influencers or introducing meme cash that don’t imply effectively for the generality of Nigerians shouldn’t be going to be tolerated,” Agama warned.
Earlier, the Fee had issued a cautionary assertion relating to the numerous dangers related to investments in meme cash, together with these linked to Afrobeat singer David Adeleke, popularly often known as Davido.
