The Securities and Exchange Commission (SEC) has warned Nigerians against investing in the meme coin recently launched by singer David Adeleke better known as Davido.
Recall that the 31-year-old musician launched $Davido, a new cryptocurrency coin, in collaboration with Phantom and Solana on May 29, 2024.
However, shortly after its launch, $Davido experienced a sharp decline in value, resulting in substantial losses for many investors.
Responding to these developments, the SEC released a statement asserting that Davido does not fall under its regulatory oversight as an investment product or a recognized asset class.
The commission emphasized that individuals who choose to invest in the meme coin do so at their own risk.
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.