The Securities and Exchange Commission (SEC) has issued a stern warning regarding two cryptocurrency products—Zugacoin and Samzuga GPT—stating that they are not licensed to operate within Nigeria’s financial market.
In an official statement on Wednesday, the commission disclosed that it became aware of online promotions advertising Zugacoin, including variants such as SZCB and SZCB2, alongside Samzuga GPT.
SEC clarified that these digital assets lack regulatory approval and are unauthorized for issuance or trading within the country.
“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 emphasized.
SEC Identifies Zugacoin and Samzuga GPT as Meme Coins
Following a preliminary investigation, SEC determined that both assets fall under the category of meme coins.
The commission explained that meme coins typically lack a defined use case, intrinsic value, or a tangible project supporting them. Instead, their value is often linked to community hype and promoters’ influence, making them vulnerable to manipulative market schemes.
SEC highlighted the risks associated with “pump-and-dump” schemes, a fraudulent activity where promoters artificially inflate the price of a coin through misleading marketing, prompting eager investors to buy in. Once prices peak, the original promoters sell off their holdings, leading to a sharp decline in value and financial losses for unsuspecting investors.
Public Advisory Against Investing in Unapproved Crypto Assets
The SEC cautioned Nigerians against engaging in Zugacoin and Samzuga GPT investments, urging them to conduct due diligence before putting money into virtual assets.
“Accordingly, the public is advised to refrain from engaging in the purchase or promotion of Zugacoin and Samzuga GPT or any of their variants as any person who invests in the scheme does so at his or her own risk,” the commission warned.
To safeguard investors, the SEC advised individuals to verify the legitimacy of cryptocurrency platforms and digital assets via the commission’s dedicated portal before making financial commitments.
