SEC Warns Public Against Investing in Davido’s Meme Coin $Davido

The Securities and Exchange Commission has warned the public against investing in the meme coin allegedly linked to the popular Nigerian singer, David Adedeji Adeleke, popularly known as Davido.

The Securities and Exchange Commission (SEC) has cautioned the public against investing in the meme coin, $Davido, which is reportedly linked to the Nigerian music star, David Adedeji Adeleke, also known as Davido.

This warning was included in a statement posted on the commission's website on Friday.

According to SEC, anyone who chooses to invest in the meme coin does so at their own risk.

“The general public is hereby notified that meme coins have no intrinsic value and are purely speculative. The general public is further cautioned that investing in meme coins, including $Davido, is very risky and should be done with a complete understanding of the inherent risks.

“Capital market operators are hereby warned not to associate themselves with instruments that are not within the SEC's regulatory purview. Such instruments should not be distributed or monitored in any way through any capital market mechanism.

“Please note that the commission does not recognize $Davido as an investment product or investable asset class within its regulatory domain, and individuals who patronize it do so at their own peril,” the statement reads.

The SEC stated that it will closely monitor market developments and is prepared to intervene with regulatory actions as necessary.

The commission further explained, “Meme coins are generally cryptocurrencies that are inspired by memes and internet jokes. They are usually conceived as fun, lighthearted cryptocurrencies that are promoted through a social media community and sometimes through celebrity endorsements.

“Meme coins are also not intended to be used as a medium of exchange, accepted by the public as payment for goods and services, or as a digital representation of capital market products such as shares, debentures, units of collective investment schemes, derivatives contracts, commodities, or other types of financial instruments or investments.”

On Wednesday, May 29, 2024, the music star announced a meme coin called $Davido.

However, the meme coin has faced widespread criticism from Nigerians after its value crashed drastically just a day after its launch.

Social media was abuzz with disappointed investors and fans expressing their frustration over the coin's plummeting value, with many displaying their dismay and disillusionment.

News source：https://www.kdj.com/cryptocurrencies-news/articles/warns-public-investing-davido-meme-coin-davido.html

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