Victoria Mbangwa
The Securities and Exchange Commission (SEC) has issued a stark warning to Nigerians over the rising threat of fraudulent cryptocurrency schemes, specifically cautioning against a digital asset known as Punisher Coin or $PUN.
In a statement released on Sunday, the Commission described the coin as a “high-risk speculative asset with no regulatory backing”, adding that its promoters are not registered to operate in any capacity within Nigeria’s capital market.
According to the SEC, Punisher Coin is a classic example of a meme coin, a category of digital tokens that often lack any underlying value or real-world utility. Such coins, it warned, are frequently used to manipulate public interest and lure unsuspecting investors into “pump and dump” schemes a fraudulent practice where the price is artificially inflated through hype before insiders cash out and leave retail investors with heavy losses.
“Our attention has been drawn to online promotions of an unauthorised presale for a cryptocurrency called PUNISHER COIN, also known as $PUN.,” the Commission said.
The Commission also took issue with media coverage that appeared to lend credibility to the coin, singling out a Daily Trust E-Paper article titled: “Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink”. SEC reiterated that no such digital asset has been approved or licensed for presale or trading in Nigeria.
Punisher Coin’s marketing strategy reportedly hinges on buzzwords, social media trends, and speculative comparisons to legitimate blockchain projects tactics the SEC warns are designed to exploit retail investors.
SEC urged the public to always verify the credentials of any digital asset and its promoters before committing their money.
The warning comes as part of broader regulatory efforts to combat the growing trend of crypto scams in Nigeria, a country where many young people are turning to digital assets as alternative investments amid economic uncertainty.
