The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians over the ongoing unauthorized presale of a cryptocurrency called “Punisher Coin,” also known by its ticker symbol, $PUN.
In an official notice published on its website, the SEC cautioned the public that the promoters or issuers of Punisher Coin are not registered or authorized to operate within the Nigerian capital market. Furthermore, the Commission emphasized that $PUN has not received any form of regulatory approval for public offering.
“The attention of the Securities and Exchange Commission (SEC) has been drawn to several online publications advertising an unauthorized presale of Crypto coin termed ‘PUNISHER COIN’ aka ‘$PUN’,” the Commission stated.
The SEC disclosed that its preliminary investigations identified Punisher Coin as a “meme coin”—a type of cryptocurrency often lacking intrinsic value, use case, or any tangible project backing. According to the regulatory body, the value of such coins typically depends on hype from promoters and the online community, making them highly vulnerable to “pump and dump” schemes.
Pump and dump schemes involve fraudsters artificially inflating the value of a coin through misleading information or hype to attract buyers. Once the price surges, the promoters then sell off their holdings at the peak—causing the value to crash and leaving unsuspecting investors with losses.
“Any attributed value to meme coin is usually linked to its promoters or the community effort, which most often than not are susceptible to pump and dump schemes,” the statement noted.
In light of these concerns, the SEC warned Nigerians to steer clear of investing in Punisher Coin or participating in its presale. It reiterated that anyone who chooses to invest in the asset does so at their own risk.
The Commission also urged members of the public to always verify the legitimacy of any virtual or digital asset, along with the registration status of its promoters or trading platforms. This can be done through its official FinTech registration portal: https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/.
The SEC’s warning adds to growing regulatory scrutiny around digital assets in Nigeria, particularly in the wake of scams and volatile market trends that have seen many investors lose money to unregulated or fraudulent crypto ventures.
Leave a Reply