The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians about investing in a cryptocurrency called Punisher Coin, also known as $PUN.
The SEC revealed that the ongoing presale of $PUN has no regulatory approval and resembles a dangerous Ponzi scheme. In a statement released from Lagos, the SEC clarified that the promoters behind Punisher Coin are not registered or authorized to operate in Nigeria’s capital market.
The commission also expressed concern over misleading online promotions, including an article by Daily Trust E-Paper titled “Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink.”
The investigation by the SEC concluded that Punisher Coin is a typical ‘meme coin’ that typically has no real value, technical support, or an obvious project goal. The value of such coins mostly comes from hype and social media buzz, making them easy prey for ‘pump and dump’ scams.
Scams artificially inflate the price of a coin, then promoters sell their holdings at a profit, leaving regular investors with giant losses when the price crashes. Investing in Punisher Coin is risky, and the public is advised to carefully check any digital asset and its promoters before investing money, the commission warned.
To prevent Nigerian investors from being defrauded and losing their funds to financial loss, Nigerian investors should remain cautious and not fall for hype-driven cryptocurrencies such as $PUN.
Also Read: Pi Network Cautions Pioneers on Fake Wallet Phishing Scams
