SEC Issues Warning Against Investing In Punisher Coin

The Securities and Exchange Commission (SEC) has issued a warning to Nigerians against investing in Punisher Coin, also known as $PUN, a cryptocurrency deemed unauthorized and lacking regulatory approval. In a statement released on Sunday in Lagos, the SEC highlighted that the coin’s presale resembles a Ponzi scheme and its promoters are not registered to operate within Nigeria’s capital market.

The SEC stated, “Our attention has been drawn to online promotions of an unauthorised presale for a cryptocurrency called PUNISHER COIN, also known as $PUN. Of particular concern is an article by Daily Trust E-Paper titled: ‘Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink.’”

The Commission clarified that neither Punisher Coin nor its promoters are registered or authorized to promote, launch, trade, or solicit investments from the Nigerian public. Initial investigations reveal that $PUN is a ‘meme coin,’ a type of digital asset typically lacking practical utility or a substantive project to support it.

Further findings confirm that $PUN, as a meme coin, generally lacks real-world value, purpose, or technical foundation. The value of such coins is often driven by hype, social media trends, or promotional efforts by their creators and community, making them susceptible to ‘pump and dump’ schemes. In these fraudulent tactics, promoters create false hype to drive buying pressure, then sell their holdings at the peak, causing the coin’s value to crash and leaving investors with significant losses.

The SEC emphasized that the value of such coins relies heavily on manipulation rather than substance, with price fluctuations fueled by excitement and misleading claims. The public is strongly cautioned against participating in the presale of Punisher Coin, as any investment is at the investor’s own risk.

The Commission advises investors to verify the legitimacy of any digital asset, its promoters, and platforms before investing. Verification can be conducted through the SEC’s official portal: https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/