ABUJA, Nigeria — The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians against investing in Punisher Coin, also known as $PUN, describing the ongoing presale of the cryptocurrency as unauthorised and high-risk.
In an official public notice released on Sunday, the Commission stated that neither the coin nor its promoters are registered to operate or solicit investments within the Nigerian capital market, thereby rendering any such activity illegal under the country’s securities laws.
“The attention of the Securities and Exchange Commission (‘the Commission’) has been drawn to several online publications blatantly advertising the unauthorised presale of a cryptocoin termed ‘Punisher Coin’, aka ‘$PUN’,” the statement read.
$PUN Labelled a Meme Coin with No Intrinsic Value
The SEC classified $PUN as a meme coin, a category of digital assets typically lacking real-world utility, tangible projects, or intrinsic value. Such assets derive their price mainly from community hype and speculative momentum, rather than fundamentals or technological innovation.
“Punisher Coin, or $PUN, is a meme coin. Meme coins generally have no use case, intrinsic value, or tangible projects backing them,” the Commission noted. “Any attributed value is usually linked to its promoters or community hype, which often leads to fraudulent pump-and-dump schemes.”
Pump-and-Dump Scheme Alert
The SEC expressed concerns about the potential for fraud, especially pump-and-dump schemes, which involve artificially inflating the price of an asset through misleading promotions, only for insiders to sell off at the peak, causing prices to crash and leaving retail investors with significant losses.
The warning also cited a recent article by the Daily Trust E-Paper, titled ‘Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink as a Top Investment Pick’, which the SEC said irresponsibly promoted an unregistered investment scheme.
Public Advised to Verify Investment Products
The Commission advised investors to always verify the authenticity of any crypto asset, its promoters, and the platforms on which they operate via the SEC’s Fintech Portal before committing funds.
“Investing in an unregistered digital asset such as $PUN is strictly at the investor’s own risk,” the SEC stressed.
The regulator reaffirmed its commitment to safeguarding investors and ensuring the integrity of Nigeria’s financial markets, warning that the rise of unregulated crypto schemes poses serious threats to individual investors and the economy at large.
Rising Appetite for Risky Investments
This latest advisory follows renewed concerns expressed by the SEC regarding the growing trend of Nigerians investing in Ponzi schemes and unregistered digital assets, despite the availability of regulated and safer investment alternatives.
