SEC Reacts as Davido Launches Cryptocurrency Meme Coin $DAVIDO, Investors Record Losses

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Securities and Exchange Commission (SEC) has reacted to concerns about the recently launched cryptocurrency meme coin $DAVIDO, which is allegedly linked to popular Nigerian singer David Adedeji Adeleke, AKA Davido.

Recall that Davido launched the crypto on Wednesday, May 29, partnering with blockchain platforms Phantom and Solana and gaining many people's patronage.

However, those who invested their funds are allegedly recording losses and calling him out on social media for "scam".

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How SEC Reacts

In a recent release, the SEC clarified that meme coins are cryptocurrencies generally inspired by memes and internet jokes.

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It explained that the coins are often envisaged as fun, light-hearted cryptocurrencies promoted through a social media community and sometimes through celebrity endorsements.

It stated,

On this note, the commission said the coin lacked fundamental values and advised the public to trade it at their own peril.

It noted,

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It also warned the Capital Market Operators not to associate with instruments that fall outside the SEC’s regulatory purview.

Fintech Expert Advice on Cryptocurrency

Legit.ng reported that a Fintech expert, Wale Fakorede, has called on the federal government to kickstart a new business climate in Nigeria by reflecting the true story of cryptocurrencies.

Fakorede, a Lagos-based crypto trader, said the image of financial transaction technology has been brutalised in Nigeria, and the consequences are affecting the aggregate economy.

However, he wondered why the government has not changed its perception when cash remains the most prevalent means of conducting illegal activities in Nigeria, despite recent claims linking cryptocurrencies to illicit activities, such as terrorism funding.

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Source: Legit.ng

News source：https://www.kdj.com/cryptocurrencies-news/articles/reacts-davido-launches-cryptocurrency-meme-coin-davido-investors-record-losses.html

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