Recently, the Nigerian Securities and Exchange Commission (SEC) warning Local investors should not invest in memecoin DAVIDO, a reference to famous Nigerian singer and star Davido. The regulator described DAVIDO as a high-risk investment, saying that investors will have to bear the consequences themselves if they choose to invest in this token and similar memecoins.
Previously, Imran Muhammad, a member of Nigeria’s ruling party, declare The SEC has clarified that DAVIDO is outside the agency’s purview.
Davido, whose real name is David Adedeji Adeleke, was recently accused of using his influence to promote a pump & dump scheme. After a brief spike, the value of the DAVIDO token plummeted just hours after Davido publicly endorsed it.
Source: TradingView
Before memecoin collapsed, Davido allegedly sold millions of tokens, raking in more than $450,000. Many Nigerians, including prominent players in the cryptocurrency industry, have condemned Davido for using cryptocurrencies to scam people and his followers.
The Nigerian SEC has warned capital market players against associating themselves with risky crypto assets like Davido’s meme coin.
“Capital market operators are cautioned not to associate with instruments outside the purview of the SEC. Such instruments are not distributed or monitored in any way through any capital market mechanism.”
Meanwhile, the Commission said it will continue to monitor developments in the ecosystem and will not hesitate to take enforcement actions if necessary.
Annie
According to Newsbitcoin
