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Davido’s ‘Meme Coin’ Risky For Investment—SEC Warns Nigerians

The Securities and Exchange Commission on Friday warned Nigerians against investing in the ‘meme coin’ allegedly linked to popular Nigerian Afrobeat singer, David Adeleke, popularly known as Davido.

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

Davido had unveiled a meme coin called $Davido on Wednesday, May 29, 2024.

However, citing the crypto platform as a “risk”, the commission in a statement posted on its website on Friday, warned the general public to desist from patronizing the platform.

“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,” SEC warned.

The commission however noted that it will take a close watch on market developments and is ready to step in with regulatory action when necessary.

“The Commission will continue to monitor developments within the ecosystem and will not relent in deploying its regulatory powers as and when required”, SEC assured.

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