Nigeria Warns Against Investing in Davido’s $DAVIDO Crypto Token


The Nigerian government has issued a stern warning to citizens and residents regarding the investment in the crypto token associated with musician David Adeleke, popularly known as Davido.

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Last month, Davido launched a meme coin inspired by himself in collaboration with blockchain platforms Phantom and Solana. Initially, the $DAVIDO token saw a rapid rise, reaching a market cap of $10 million within four hours and gaining attention on DEX Screener.

However, the enthusiasm quickly waned as the coin’s value dropped on Thursday, prompting the Securities and Exchange Commission (SEC) to issue a cautionary statement on Friday. The SEC emphasized that $DAVIDO and similar meme coins are not recognized as investment products or investable asset classes under its regulatory framework.

In their statement, the SEC clarified that meme coins are typically cryptocurrencies inspired by memes and internet trends, often promoted through social media and celebrity endorsements. These coins lack fundamental value and are purely speculative, the SEC cautioned, warning that investing in them carries high risks.

Capital Market Operators were also warned against associating with such instruments that fall outside the SEC’s regulatory purview. The SEC concluded by asserting its commitment to monitoring developments in the crypto ecosystem and using regulatory powers as needed.

Investors were urged to exercise caution and fully understand the risks associated with meme coins like $DAVIDO before engaging in any transactions, emphasizing that investing in such speculative assets is at their own risk.

By Naija247news
By Naija247news
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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