Nigeria’s Securities and Exchange Commission (SEC) has issued a warning to investors about $DAVIDO, a meme coin endorsed by Afrobeats star, Davido.
About 2 weeks ago, Davido was accused of orchestrating a pump-and-dump scheme after his latest crypto token experienced a surge of 200% in value before sharply declining by 56% within just an hour.
“The Commission does not recognise $DAVIDO as an investment product or investable asset class under its regulatory purview, as such individuals who patronise it do so at their peril,” the SEC said in a statement on its website.
🇳🇬Nigerian Celebrity, #Davido, Among Stars Cashing in on Celebrity Pump and Dump Crypto Craze
The Nigerian singer has a history of launching and promoting ‘multiple scams in the past,’ including ventures like RapDoge, Echoke, and Racksterli, the latter being an investment Ponzi… pic.twitter.com/Xir6DrV7fj
— BitKE (@BitcoinKE) June 3, 2024
The SEC advised the public against investing in the coin, noting that meme coins are not ‘intended to serve as a medium of exchange accepted by the public as payment for goods and services, or as a digital representation of capital market products…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,” the Commission said.
The Nigerian singer has a history of launching and promoting ‘multiple scams in the past,’ including ventures like RapDoge, Echoke, and Racksterli, the latter being an investment Ponzi scheme.
Nigeria 🇳🇬 Music Superstar, Davido, Launches ‘The EChoke’ Crypto Fan Token, Buys Mutant Apes NFTs: https://t.co/9odzrXcd4s @davido @BitsikaAfrica @atsudavoh #NFTs
— BitKE (@BitcoinKE) November 24, 2021
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