Nigeria’s Securities and Exchange Commission (SEC) has issued a strong public advisory warning citizens against investing in the ongoing presale of Punisher Coin, also known as $PUN, citing the asset’s lack of regulatory approval and its classification as a high-risk “meme coin.”
In a public notice released over the weekend, the SEC disclosed that neither Punisher Coin nor its promoters are registered to operate or solicit investments within Nigeria’s capital market. The warning follows a surge in online advertisements and news features promoting $PUN as a promising investment, including a recent article from the Daily Trust E-Paper that compared it to more established cryptocurrencies like Avalanche and Chainlink.
“The attention of the Commission has been drawn to several online publications blatantly advertising the unauthorised presale of a crypto coin termed ‘Punisher Coin,’ aka ‘$PUN’,” the SEC stated. “We want to emphasize that the promoters or issuers of $PUN are not registered to operate in any capacity in the Nigerian capital market, and the coin itself has not been approved by the Commission for issuance to the public.”
According to the Commission, preliminary investigations into $PUN revealed that it is a meme coin—digital assets that typically lack real-world use cases or intrinsic value. Meme coins often rise in popularity through online hype, viral marketing, and community enthusiasm, rather than being tied to any substantive technological or financial projects.
“Meme coins generally have no use case, intrinsic value, or tangible projects backing them,” the SEC explained. “Any attributed value is usually linked to its promoters or community hype, which often leads to fraudulent pump-and-dump schemes.”
Pump-and-dump schemes involve promoters artificially inflating the value of a coin through misleading or exaggerated claims, attracting unsuspecting investors. Once the coin reaches a price peak, the promoters sell off their holdings at a profit, leaving ordinary investors with losses as the coin’s value collapses.
The SEC made it clear that anyone choosing to invest in Punisher Coin does so at their own risk, and it advised the public to be extremely cautious when dealing with crypto-related investment opportunities.
“This is not a minor concern,” the Commission said. “We’ve seen a disturbing trend of Nigerians gravitating toward Ponzi-like schemes and unregulated digital assets, despite the availability of safer, regulated investment products.”
The regulatory body reiterated its commitment to safeguarding investors and preserving the integrity of Nigeria’s financial system. It urged members of the public to verify the legitimacy of any digital asset, including its promoters and the platforms offering it, before making financial commitments. To support this, the SEC has made available a dedicated online portal for verifying registered fintech operators.
This recent warning is part of the SEC’s broader crackdown on illicit investment schemes targeting vulnerable Nigerians, particularly amid economic uncertainty and high inflation. The Commission has repeatedly urged citizens to seek out registered brokers and verified platforms when exploring any form of investment, especially in the volatile crypto sector.
“Digital assets and virtual currencies remain unregulated in Nigeria,” the statement emphasized. “Until there is a comprehensive framework in place, the public is strongly advised to exercise utmost caution.”
The SEC’s warning reflects its broader effort to prevent the proliferation of high-risk, speculative financial products in the country and protect the growing number of first-time retail investors from falling prey to hype-driven or fraudulent schemes.
As the cryptocurrency landscape evolves globally, regulators in Nigeria are doubling down on investor education and market supervision to curb the spread of digital scams masquerading as legitimate opportunities. The case of Punisher Coin stands as a timely reminder for Nigerians to think twice, verify thoroughly, and always prioritize financial safety over speculative gain.
