Securities and Exchange Commission, has warned Nigerians against investing in cryptocurrency known as Punisher Coin, or $PUN, due to its unauthorized presale and lack of regulatory approval.
In a statement spotted on SEC’s website on Saturday, stated that promoters of $PUN are not registered to operate in any capacity within Nigerian capital market.
According to the Commission’s preliminary investigations, Punisher Coin falls under the category of “meme coins,” digital assets typically characterized by absence of tangible utility.
SEC highlighted that the value of such coins is often driven by hype and social media buzz, making them vulnerable to market manipulation through schemes commonly known as pump.
The commission explained that these schemes involve promoters inflating the price of the coin through misleading claims, only to sell their holdings at the peak, leaving other investors exposed to significant losses when the hype fade dump.
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The statement reads: “The Commission hereby informs the public that the promoters or issuers of Punisher Coin aka “$PUN” are not registered to operate in any capacity in the Nigerian Capital Market, and also Punisher Coin ($PUN) is not approved by the Commission for issuance to the public.
Accordingly, the public is advised to refrain from engaging in the purported presale of PUNISHER COIN ($PUN) as any person who invests in the scheme, does so at his/her own risk.
“The Commission similarly reminds the investing public of the need to always VERIFY the authenticity of crypto/virtual or digital assets, the registration status of their promoters and trading platforms via the Commission’s dedicated portal: https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/ before engaging in any form of virtual or digital assets investment.”
via: Information Nigeria
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