The Securities and Exchange Commission has reacted to concerns about the recently launched cryptocurrency meme coin $DAVIDO, allegedly linked to the popular Nigerian singer Davido.
Recall that Davido launched the crypto on Wednesday, May 29, partnering with blockchain platforms Phantom and Solana. It gained many people’s patronage shortly after.
However, those who invested their funds are allegedly recording losses and calling him out on X for “scam”.
In a recent release, the SEC clarified that meme coins are cryptocurrencies generally inspired by memes and internet jokes.
It explained that the coins are often envisaged as fun, light-hearted cryptocurrencies promoted through a social media community and sometimes through celebrity endorsements.
It stated:
The commission said the coin lacked fundamental values and advised the public to trade it at their own peril.
It noted:
It also warned capital market operators not to associate with instruments that fall outside the SECâs regulatory purview.
TimesNow.com.ng previously reported that a Fintech expert, Wale Fakorede, called on the federal government to kickstart a new business climate in Nigeria by reflecting the true story of cryptocurrencies.
Fakorede, a Lagos-based crypto trader, said the image of financial transaction technology has been brutalised in Nigeria, adding that the consequences are affecting the aggregate economy.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
