The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians against investing in a cryptocurrency called Punisher Coin, also known by the symbol $PUN, describing it as an unauthorized investment scheme with characteristics of a Ponzi operation.
In an official statement released on Sunday in Lagos, the SEC emphasized that the presale of Punisher Coin lacks regulatory approval and that its promoters are not registered to operate within Nigeria's capital market in any capacity.
"Our attention has been drawn to online promotions of an unauthorised presale for a cryptocurrency called PUNISHER COIN, also known as $PUN. Of particular concern is an article promoting why Punisher Coin could join established cryptocurrencies like Avalanche and Chainlink," the statement explained.
Characteristics of a Potential Scam
According to the regulatory body, their investigation confirms that $PUN is a meme coin typically without real-world value, purpose, or technical foundation. The SEC noted that such coins derive their value primarily from hype, social media trends, or promotional efforts by creators and community members.
"This makes them particularly vulnerable to 'pump and dump' schemes, which are fraudulent tactics used to artificially inflate and then crash a coin's market price," the statement further warned.
The Commission emphasized that neither Punisher Coin nor its promoters have received approval to promote, launch, trade, or solicit investment from the Nigerian public, placing investors at significant risk.
Broader Context of Cryptocurrency Regulation
This warning comes amid increasing scrutiny of cryptocurrency investments in Nigeria. The SEC has recently intensified efforts to protect investors from unauthorized investment schemes, particularly in the digital asset space where regulation remains challenging.
Earlier this year, the Commission advised Capital Market Operators (CMOs) to renew their registrations and vowed to deal with Ponzi scheme operators and other 'bad actors' in the financial market.
The SEC has also been working on initiatives to enhance sustainability in Nigeria's financial markets, including approving the NGX Impact Board and a digital investment platform aimed at facilitating the country's journey toward a $1 trillion economy.
Investors are advised to conduct thorough research and verify the regulatory status of any investment opportunity before committing their funds.
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