Stay Off Davido’s Crypto Token – SEC Cautions Nigerians
The Federal Government has warned Nigerians to refrain from investing in the crypto token of music star, David Adeleke, better known as Davido, describing it as an unsafe investment.
A statement posted on the Securities and Exchange Commission (SEC)’s website on Friday warned the public that investing in the meme coin is highly risky.
This is as the Commission also said that $Davido as an investment product or investable asset class is not recognized under its regulatory purview.
The statement said; “The attention of the Securities and Exchange Commission, Nigeria (‘SEC’) has been drawn to a meme coin known as “$Davido” allegedly linked to the popular Nigerian singer, David Adedeji Adeleke aka Davido.”
“Generally, meme coins are crypto-currencies inspired by memes and internet jokes. They are often envisaged as a fun, light-hearted crypto-currencies 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.
“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 recognize $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronize it, do so at their peril.
“The Commission will continue to monitor developments within the ecosystem and will not relent in deploying its regulatory powers as and when required.”
SEC’s warning is coming on the heels of Davido’s announced launch of the crypto token or memecoin inspired by himself early last month.
Expectedly, the digital currency, known as “Timeless Davido” ($DAVIDO), sparked excitement among the singer’s fans and supporters.
According to reports, Davido had worked with the main blockchain platforms, Phantom and Solana to complete the proposal.
Initially, $DAVIDO skyrocketed, hitting a market cap of $10 million in four hours and gaining momentum on DEX Screener.
However, the excitement and jubilation were short-lived, as the coin’s value dropped drastically on Thursday.
But hours after being called out by a significant number of disgruntled X users, the former DMW head welcomed everyone who joined the $DAVIDO community early on.
Furthermore, he said that some people were fortunate enough to win $100 via the Solana platform.
