The Securities and Exchange Commission (SEC) of Nigeria has issued a disclaimer on the $Davido meme coin stating it held no actual value or asset and as such any investment in it was deemed “highly risky.” 

SEC, in a statement released on Friday, warned intending investors to steer clear of $Davido coin linked to Nigerian afrobeat singer, David ‘Davido’ Adeleke. 

The Grammy-nominated artiste, on May 30, launched and promoted $Davido on his X handle and later deleted the posts following numerous callouts by fans and investors who reported that the meme coin had crashed. Davido launched the meme coin partnering with Phantom and Solana.

The commission noted that the $Davido meme coin, inspired by “Internet jokes”, was not tenable as a means of payment, whether digitally or otherwise.

“Generally, meme coins are cryptocurrencies inspired by memes and internet jokes,” the commission stated. “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 digital representation of capital market products such as shares, debentures.” 

SEC clarified that $Davido was not recognised as an investable asset and warned capital market operators “not to associate with instruments that fall outside the SEC’s regulatory purview.”

“The Commission does not recognise $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronise it, do so at their peril.”

“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.”