The Securities and Exchange Commission (SEC), has warned members of the public against investing in ‘meme coin’ submitting that it would be risky and dangerous to do so.
Team@orientactualmags.com learned that SEC gave this warning in a statement posted on its website on Friday.
‘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 recognize $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronize it, do so at their peril’ SEC submitted.
SEC has also provided needed information about cryptocurrencies noting that it was not designed to serve as a medium of exchange.
‘Generally, meme coins are cryptocurrencies inspired by memes and internet jokes. They are often envisaged as fun, light-hearted cryptocurrencies promoted through a social media community and sometimes through celebrity endorsements.
Meme coins are also not intended to serve as a medium of exchange accepted by the public as payment for goods and services, or as a digital representation of capital market products such as shares, debentures, units of collective investment schemes, derivatives contracts, commodities or other kinds of financial instruments or investments’ the statement added.
Recall that Mr David Adedeji Adeleke, who is popularly called Davido, had unveiled a meme coin called $Davido on Wednesday, May 29, 2024-Team@orientactualmags.com Do you have any information you wish to share with us? Do you want us to cover your event or programme? Kindly send SMS to 08059100286, 09094171980 or get in touch via orientactualmag@gmail.com. Thank you
