SEC issues warning against investment in $PUN

The Securities and Exchange Commission (SEC) of Nigeria has warned against investment in a digital currency called Punisher Coin, popularly referred to by its ticker ($PUN).

The warning follows the emergence of widespread online promotion and an ongoing pre-sale of the coin, which the commission has flagged as unauthorised and unapproved.

According to the SEC, neither the promoters nor the developers of $PUN have been registered with the Commission, nor have they obtained any form of approval to conduct investment solicitations or digital asset sales within the Nigerian capital market.

As a result, the presale and all related promotional campaigns currently being circulated are considered illegal and unregulated. In a statement, the Commission said its attention was drawn to a growing number of digital media advertisements promoting $PUN as a lucrative investment opportunity.

“The attention of the Commission has been drawn to several online publications blatantly advertising unauthorized presale of Cryptocoin termed Punisher Coin aka $PUN.

“Particularly perturbing is the write-up by Daily Trust E-Paper: ‘Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink as a Top Investment Pick,” it stated.

It noted that further investigation revealed that $Pun fell into the category of what is commonly referred to as ‘meme coins’.

“These are digital tokens often created without a genuine use case, business model or underlying project to support their valuation.

“Unlike more established cryptocurrencies that offer technological innovation or financial utility, meme coins are typically driven by internet culture, viral marketing and speculative interest,” it noted.

Their value, the commission noted, is largely based on community sentiment or promotional buzz rather than any intrinsic or technical merit. According to the SEC, $Pun fits this pattern, offering no real utility, service, or product backing its issuance. The commission emphasised that the public should exercise extreme caution and avoid participating in the coin’s presale or any investment activity related to it.