The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in a cryptocurrency called Punisher Coin, also known by the symbol $PUN.
In a statement issued Sunday in Lagos, SEC said the presale was unauthorised and lacked regulatory approval, resembling a Ponzi scheme.
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According to the statement, the promoters of $PUN are not registered to operate in any capacity within Nigeria’s capital market.
SEC said: “Our attention has been drawn to online promotions of an unauthorised presale for a cryptocurrency called PUNISHER COIN, also known as $PUN.
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“Of particular concern is an article by Daily Trust E-Paper titled: ‘Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink.’”
SEC clarified that Punisher Coin and its promoters are neither registered nor approved to promote, launch, trade, or solicit investment from the Nigerian public.
Preliminary investigations indicate Punisher Coin is a ‘meme coin’ — a type of digital asset often lacking tangible utility or a supporting project.
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Further findings confirm $PUN is indeed a meme coin, typically without real-world value, purpose, or technical foundation backing its existence.
The value of such coins is usually driven by hype, social media trends, or promotional efforts by its creators and community.
This makes them vulnerable to ‘pump and dump’ schemes — fraudulent tactics used to inflate and then crash a coin’s market price.
In such schemes, promoters spread false hype, creating buying pressure, then sell off their holdings at the peak, leaving others with losses.
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After the promoters sell and stop hyping, the coin’s value usually plummets, causing unsuspecting investors to lose money rapidly.
SEC noted these coins’ value is largely based on manipulation, not substance, with price swings driven by excitement and misleading claims.
The public is therefore strongly warned against participating in the presale of Punisher Coin, as any investment is entirely at one’s own risk.
The Commission urges investors to verify the legitimacy of any digital asset, its promoters, and platforms before committing funds.
Verification can be done via SEC’s official portal: https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/
(NAN)
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