The Securities and Exchange Commission (SEC) has published a public announcement informing the general public about the dangers of investing in Nigerian singer Davido’s crypto token, $Davido.
The SEC emphasised the potential disasters that could occur if people bought into the coin.
The Nigerian singer announced his partnership with Phantom and Solana. He took to X (formerly Twitter) to announce this news as he also dropped the launch of his coin ‘$Davido’.
However, in less than a day, the $DAVIDO coin has lost over 90% of its value, trading at $0.000010, receiving backlash from Nigerians who trusted the artist’s word and bought the coin.
The Securities and Exchange Commission (SEC) responded to the development of the situation on its website, stating that its attention had been called to the ‘$Davido’ meme coin.
“The general public is now advised that meme coins lack fundamental value and are purely speculative. The general public is further WARNED that investing in meme coins, including $Davido, is highly risky and should be done with a full understanding of the associated risk,” the public announcement read.
“PLEASE NOTE that the Commission does not recognise $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronise it do so at their peril.”
Investor Alert – $Davido Meme Coin Disclaimer
— SEC Nigeria (@SECNigeria) June 14, 2024
The public is hereby advised that investing in a Meme coin known as “$Davido” allegedly linked to the popular Nigerian singer, David Adedeji Adeleke AKA Davido is highly risky.
Individuals who patronize it do so at their peril.
Ayomitide Adeyinka is a content writer, crypto journalist and editor with a Bsc in Political Science. He is also an egalitarian.
Leave a reply