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The Securities and Exchange Commission (SEC) has issued a company warning to the Nigerian public, urged them to avoid cryptocurrency known as Punisher Coin, symbolized as $, which is described as invalid, not regulated, and has the potential to cheat.
In a statement released on Sunday from Lagos, the Commission condemned the ongoing online promotion and presale activities around digital assets, which stated that both coins and promoters were not registered to operate within the Nigerian capital market framework.
“Our attention has been focused on online promotions from the invalid presale for cryptocurrency called Punisher Coin, also known as $,” the statement said.
SEC expressed his deep concern over what he saw as a deceptive effort to attract unusual investors, quoting certain media references that enhance the profile of controversial assets.
“The special concern is an article by the Daily Trust e-Paper entitled: ‘Cryptos to Buy: Why Coin Coins can join snow and chainlink landslides.'”
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According to the commission, the initial investigation revealed that even $ was a “coin of meme”-a type of cryptocurrency that is often made as a joke or internet trend, usually does not have a real utility, real world application, or basic technology.
“Further findings confirm \ $ are indeed meme coins, usually without real world values, goals, or technical foundations that support their existence,” said SEC.
The Regulatory Agency warns that such tokens are very vulnerable to the “pump and dump” scheme – a manipulative strategy where artificial asset values increase through hype or wrong information, only for insiders to get rid of their ownership at the top, causing prices to fall and investors lose money.
“The coin value is usually driven by hype, social media trends, or promotional efforts by their creators and communities,” the statement explained.
“After the promoter sells and stops hyping, the coin value usually drops, causing investors who are not suspicious of losing money quickly.”
Highlighting the speculative and manipulative nature of the meme coin, SEC emphasizes that their judgment is based more on the excitement and misleading claims than in solid financial fundamentals.
“SEC clarifies that Punisher Coin and promoter are not registered or approved to promote, launch, trade, or ask for investment from the Nigerian public.”
Given this finding, the commission sounds alarm to all prospective investors:
“Therefore, the community is very warned not to participate in the Presale of Punisher Coin, because any investment is entirely in its own risk.”
To protect themselves, the Nigerians were urged to conduct a complete complex test and verify the legitimacy of their digital assets and operators through the official Commission Portal: (https://home.sec.gov.ng/fintech-and-hub-hubporport/egistered-intech operator/)
