The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in the cryptocurrency known as Punisher Coin, or $PUN, citing its unauthorised presale and lack of regulatory approval. This latest action underscores the Commission’s ongoing efforts to clamp down on unregistered and illegal investment schemes in the country.
In a public notice on Sunday, the SEC stated that the promoters or issuers of $PUN are not registered to operate in any capacity within the Nigerian capital market.
“The attention of the Securities and Exchange Commission has been drawn to several online publications blatantly advertising unauthorized presale of Cryptocoin termed ‘PUNISHER COIN’ aka ‘$PUN’. Particularly perturbing is the write-up by Daily Trust E-Paper: ‘Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink as a Top Investment Pick’,” the Commission noted.
“The Commission hereby informs the public that neither ‘PUNISHER COIN’ aka ‘$PUN’ nor its promoters have been vetted nor registered by the Commission to either promote, launch, sell, trade, or solicit investments from the Nigerian public.”
According to preliminary investigations, the Commission categorized Punisher Coin as a “meme coin,” which typically lacks utility, intrinsic value, or any underlying project.
“Further investigation has revealed that Punisher Coin or $PUN is a meme coin. Meme coins generally have no use case, intrinsic value, or tangible projects backing them. Any attributed value to a meme coin is usually linked to its promoters or the community effort, which more often than not are susceptible to pump-and-dump schemes,” the SEC stated.
Pump-and-dump schemes involve promoters spreading false or misleading information to create a buying frenzy that inflates the coin’s price. These promoters then sell their holdings at the peak, and once the hype dies down, the price typically crashes, leaving unsuspecting investors with significant losses, the commission explained.
SEC warned that the value of such coins is often driven by social media buzz and hype, making them highly vulnerable to manipulation and investor exploitation.
The public is therefore strongly cautioned against participating in the presale of Punisher Coin ($PUN), as anyone who does so does it at their own risk.
“The Commission similarly reminds the investing public of the need to always verify the authenticity of crypto, virtual, or digital assets, along with the registration status of its promoters and trading platform, via the Commission’s dedicated portal before indulging in any form of virtual or digital asset investment,” the SEC added.
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