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… Says It Does Not Recognise Coin As An Investment Product
The Federal Government through the Securities and Exchange Commission(SEC) has warned Nigerians not to invest in the crypto token of Music Star, David Adeleke, popularly known as Davido.
SEC in a statement at the weekend, warned the public that investing in the meme coin is highly risky.
The commission informed the public that it does not recognise $Davido as an investment product or investable asset class under its regulatory purview.
“The attention of the Securities and Exchange Commission, Nigeria (“SEC”) has been drawn to a meme coin known as “$Davido” allegedly linked to the popular Nigerian singer, David Adedeji Adeleke AKA Davido.”
“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 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,” SEC said in the statement.
“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 $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronize it, do so at their peril. The Commission will continue to monitor developments within the ecosystem and will not relent in deploying its regulatory powers as and when required,” SEC added.
Recall that Davido had last month unveiled the crypto token or meme coin inspired by himself.
The digital currency, known as “Timeless Davido” ($DAVIDO), elicited excitement among the music star’s fans in and outside the country.
Davido had worked with the main blockchain platforms Phantom and Solana to complete the proposal.
With the unveiling of the product, the $DAVIDO increased with a market cap of $10 million within some hours of launch and was gaining momentum on DEX Screener.
But surprisingly and to the shock of the fans, the value of the coin dropped on Thursday.
Davido was called out by a significant number of disgruntled twitters now X users following the sudden decline in value of the coin.
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