From Adanna Nnamani, Abuja
The Securities and Exchange Commission (SEC) has cautioned the investing public against patronising Zugacoin and Samzuga GPT, describing them as unauthorised and unregulated crypto assets.
In a statement issued on Wednesday, the Commission said it had observed online promotions of the two digital assets, including Zugacoin variants SZCB and SZCB2, despite their lack of regulatory approval.
“The Commission hereby informs the public that the promoters or issuers of Zugacoin and Samzuga GPT are not registered to operate in any capacity in the Nigerian Capital Market, and also Zugacoin and Samzuga GPT are not approved by the Commission for issuance to the public,” the statement read.
According to the SEC, preliminary investigations revealed that Zugacoin and Samzuga GPT are classified as meme coins.
“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 most often than not are susceptible to pump and dump schemes, a form of fraudulent activity that involves promoters spreading false or misleading information to create a buying frenzy that ‘pumps’ up the price of a ‘coin’ and then ‘dumps’ the coin by selling their own coins at the inflated price,” the Commission said.
The Commission noted that once such promoters exit and stop hyping the coin, its value typically crashes, leaving unsuspecting investors with significant losses.
As a result, the SEC strongly advised Nigerians to desist from purchasing or promoting Zugacoin, Samzuga GPT, or any of their variants.
“Any person who invests in the scheme does so at his/her own risk,” it warned.
The regulator also urged investors to verify the authenticity of any digital asset or trading platform and confirm the registration status of its promoters before committing funds.
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