Wisdom Engraced
Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us
The Securities and Exchange Commission (SEC) has issued a warning to investors about the cryptocurrency Punisher Coin, also known as $PUN, citing concerns about its legitimacy and potential risks. According to the SEC, the promoters of Punisher Coin are not registered to operate in Nigeria’s capital market, and their activities are unauthorised.
For further information, read more details here
The regulator’s investigation revealed that Punisher Coin falls under the category of “meme coins,” which are digital assets that often lack tangible utility or underlying projects. “Further investigation has revealed that Punisher coin, or $PUN, is a meme coin. Meme coins generally have no use case, intrinsic value, or tangible projects backing them,” the SEC stated.
The SEC warned that meme coins are susceptible to pump and dump schemes, where promoters spread false or misleading information to artificially inflate the price of the coin before selling their holdings at the peak. “Any attributed value to a meme coin is usually linked to its promoters or the community effort, which most often than not are susceptible to pump and dump schemes—a form of fraudulent activity that involves promoters spreading false or misleading information to create a buying frenzy that ‘pumps’ up the price of a ‘coin’ and then ‘dumps’ the coin by selling their own coins at the inflated price,” the SEC noted.
The regulator cautioned investors to be wary of investing in Punisher Coin, emphasising that anyone who invests in the scheme does so at their own risk. “The public is therefore strongly warned to be wary about investing in the purported presale of Punisher Coin ($PUN) as any person who invests in such a scheme does so at his or her own risk,” the SEC stated.
The SEC also reminded investors to verify the authenticity of cryptocurrencies and their promoters through the Commission’s dedicated portal before investing. “The Commission similarly reminds the investing public of the need to always verify the authenticity of crypto and virtual or digital assets, the registration status of its promoters and trading platform via the Commission’s dedicated portal,” the regulator advised.
Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it.
Drop your comment in the section below, and don’t forget to share the post
Jonathan Nwokpor
