Davido Meme Coin: Invest With $Davido At Your Own Risk – SEC Warns

The Securities and Exchange Commission has cautioned the public to steer clear of putting their money into the meme coin that is supposedly connected to the well-known Nigerian artist, David Adedeji Adeleke, who goes by the stage name Davido.

This information was shared in a notice published on the commission’s online platform on Friday, June 14, 2024.

The SEC advised that individuals considering investing in the meme coin should proceed with caution.

The notice reads: “The general public is hereby 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.

“Capital market operators are, by this notice, warned not to associate with instruments that fall outside the SEC’s regulatory purview. Such instruments should not in any manner be distributed or monitored through any capital market mechanism.

“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 patronize it, do so at their peril,” the statement read.

The Securities and Exchange Commission (SEC) has stated that it will closely monitor market developments and take regulatory action as necessary.

Don’t miss out on any real-time information. Join our WhatsApp group to stay updated.

CLICK HERE TO JOIN

The SEC has provided further clarification on meme coins, describing them as cryptocurrencies that draw inspiration from memes and internet jokes. These coins are often seen as lighthearted and fun, with promotion taking place within social media communities and sometimes through celebrity endorsements.

The SEC has emphasized that meme coins are not intended to be used as a widely accepted medium of exchange for goods and services, nor are they meant to represent capital market products like shares, debentures, or derivatives contracts.

They are distinct from traditional financial instruments and investments.

It is worth noting that Davido recently introduced a meme coin called $Davido on May 29, 2024.

However, the coin faced significant criticism from Nigerians as its value sharply declined just one day after its launch.

Disappointed investors and fans took to social media to express their frustration and disillusionment with the coin’s plummeting value.