SEC Warns Nigerians Against Investing in Punisher Coin (bytemitope adebayo)

The Securities and Exchange Commission (SEC) has warned Nigerians against investing in Punisher Coin, also known as $PUN

The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in Punisher Coin (CRYPTO: PUN), also known as $PUN.

The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in Punisher Coin (CRYPTO: PUN), also known as $PUN.

In a public notice, the Commission highlighted that Punisher Coin is an unregistered and highly risky digital asset being advertised and sold in Nigeria without the SEC's approval.

The SEC expressed concern over recent articles in the Daily Trust E-Paper, such as the one titled "Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink as a Top Investment Pick." According to the Commission, these articles promote Punisher Coin and its presale in a manner that could mislead investors.

"The promoters of Punisher Coin and the presale have not been vetted or licensed by the SEC to launch, sell, trade, or solicit investments in any capacity within the Nigerian capital market," the statement emphasized.

The SEC's preliminary investigations have revealed that $PUN falls under the category of meme coins—digital tokens typically lacking any tangible project, intrinsic value, or real-world application.

"Further investigation has revealed that Punisher Coin, or $PUN, is a meme coin. Meme coins generally have no use case, intrinsic value, or tangible project backing them. Any attributed value is often hype-driven and dependent on aggressive promotion, which is commonly associated with pump-and-dump schemes," the Commission explained.

Pumps and dumps occur when promoters inflate the price of a coin by spreading false or exaggerated claims to deceive investors. At the height of the hype, the promoters sell their vast holdings, causing the value to plummet as the hype fades. This leaves retail investors with substantial financial losses.

"The public is advised to exercise extreme caution and to verify the legitimacy of any crypto or digital asset investment through the SEC's Fintech and Innovation Hub portal before engaging with such offerings," the SEC pleaded.

The Commission concluded its notice by stating that any person who chooses to invest in the presale or trade of Punisher Coin ($PUN) does so entirely at his or her own risk.