FG warns Nigerians against investing in Davido’s crypto token

The federal government, FG, has issued a cautionary advisory to citizens regarding the investment in a cryptocurrency linked to music icon David Adeleke, popularly known as Davido.

Recently, Davido introduced a digital currency called “Timeless Davido” ($DAVIDO), inspired by his persona. Initially launched to great fanfare, the meme coin swiftly surged to a market cap of $10 million within four hours, garnering attention on platforms like DEX Screener. However, its value later experienced a decline.

Following mixed reactions from early adopters, Davido acknowledged those who joined the $DAVIDO community early, mentioning that some had won $100 via the Solana platform.

In response, the Securities and Exchange Commission (SEC) issued a statement on Friday cautioning the public against investing in meme coins like $DAVIDO due to their speculative nature.

The SEC clarified that such coins do not possess intrinsic value and are primarily speculative assets, not recognized as legitimate investment products under its regulatory framework.

“Meme coins are cryptocurrencies often promoted through social media and celebrity endorsements, characterized by their light-hearted nature and lack of underlying financial assets,” the SEC emphasized in its advisory.

The SEC further warned capital market operators against associating with instruments falling outside its regulatory purview, emphasizing that individuals who engage in such investments do so at their own risk.

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