Davido, SEC logo
By Our Reporter
‘Don’t invest in Davido’s meme coins. Its Risky’ those were the words and advice posted on Friday on the website of the Securities and Exchange Commission (SEC) over the meme coin linked to Nigerian singer, David Adedeji Adeleke, popularly known as Davido.
SEC warned the public against investing in the meme coins allegedly linked to Davido.
SEC warned that anyone who patronises the meme coins, do so at their peril.
“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 said it will keep a close watch on market developments and is ready to step in with regulatory action as needed.
It would be recalled that Davido unveiled a meme coin called $Davido on Wednesday, May 29, 2024.
However, the meme coin has been widely criticised by Nigerians after its value nosedived just a day after its launch.
Investors and fans vented their frustrations as the coin’s value York a downward turn.
The commission further explained, “Generally, 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.
“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.”
