The Securities and Exchange Commission (SEC) has issued a stern warning to the Nigerian public regarding the ongoing unauthorized presale of a cryptocurrency called Punisher Coin, also known as $PUN.
The Commission, in a public notice published on its website, disclosed that Punisher Coin is being advertised through various online platforms despite not being registered or approved for public issuance in Nigeria.
“The promoters or issuers of ‘Punisher Coin’ aka ‘$PUN’ are NOT REGISTERED to operate in any capacity in the Nigerian Capital Market,” the SEC stated.
Preliminary investigations
According to preliminary investigations by the Commission, $PUN is classified as a meme coin, a category of digital assets typically known for their lack of tangible utility, intrinsic value, or supporting projects.
- The value of such coins is often driven by hype, social media buzz, and promotional activities, making them especially prone to market manipulation.
- The Commission noted that meme coins like $PUN are frequently associated with pump and dump schemes.
- These schemes involve promoters artificially inflating the price of a coin through misleading or exaggerated claims, only to sell off their holdings once the price peaks, leaving retail investors with steep losses once the hype dies down.
“Any person who invests in the scheme does so at his/her own risk,” the SEC warned.
The SEC’s advisory serves as part of its broader efforts to protect investors from fraudulent and unregulated investment opportunities within Nigeria’s fast-growing digital asset space. The Commission urged members of the public to verify the registration status of any investment offering, especially those involving crypto assets, through its official channels.
What you should know
This latest alert comes amid rising concerns over the proliferation of dubious digital currencies and platforms operating outside the regulatory framework.
- The Director-General of SEC, Emomotimi Agama, had recently issued a stern warning to Nigerian celebrities to stop promoting unauthorised meme coins, citing the provisions of the Investments and Securities Act 2025 recently signed by President Bola Tinubu.
- Agama said the Act has established clear rules and regulations for digital asset platforms, including registration requirements to promote transparency and trust.
- He said the registration allows the SEC to crack down on illicit activities, such as Ponzi schemes, pump and dump tokens, and unregistered exchanges, creating a safer environment for investors.
“It is important that even for celebrities, we must be cautious about what we do. Becoming influencers or introducing meme coins that do not mean well for the generality of Nigerians is not going to be tolerated,” Agama warned.
Earlier, the Commission had issued a cautionary statement regarding the significant risks associated with investments in meme coins, including those linked to Afrobeat singer David Adeleke, popularly known as Davido.
