The Securities and Exchange Commission has issued a warning to Nigerians against participating in the ongoing presale of a cryptocurrency known as Punisher Coin, or $PUN, citing lack of regulatory approval and potential investor risk.
A public notice released by the Commission on Sunday stated that neither the coin nor its promoters are registered to operate or solicit investments within the Nigerian capital market.
“The attention of the Securities and Exchange Commission (‘the Commission’) has been drawn to several online publications blatantly advertising the unauthorised presale of a cryptocoin termed ‘Punisher Coin’, aka ‘$PUN’,” the notice read.
It further expressed concern over a recent article by the Daily Trust E-Paper titled ‘Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink as a Top Investment Pick’, which the SEC said promotes an unregistered investment scheme.
According to the Commission, preliminary investigations revealed that $PUN falls into the category of “meme coins,” a type of digital asset that typically lacks real-world utility or intrinsic value. The SEC warned that meme coins derive value largely from hype generated by promoters or online communities and are therefore highly vulnerable to pump-and-dump schemes.
“Punisher Coin, or $PUN, is a meme coin. Meme coins generally have no use case, intrinsic value, or tangible projects backing them,” the statement further read. “Any attributed value is usually linked to its promoters or community hype, which often leads to fraudulent pump-and-dump schemes.”
These schemes involve artificially inflating the price of a coin through false or misleading claims to attract unsuspecting investors. Once the price peaks, promoters offload their holdings, causing the coin’s value to crash and leaving investors with substantial losses.
The Commission emphasised that any individual who chooses to invest in the unregistered $PUN coin does so at their own risk.
It also urged members of the public to always verify the authenticity and regulatory status of any crypto asset, its promoters, and trading platforms before making any investment decisions. Investors can confirm such details via the SEC’s fintech portal at:
The SEC reiterated its commitment to protecting investors and maintaining the integrity of Nigeria’s capital market.
The PUNCH reported that the Securities and Exchange Commission has expressed fresh concerns over Nigerians’ appetite for investing in Ponzi schemes despite the availability of safer, regulated investment products.
