SEC raises red flag on ‘Punisher Coin’ cryptocurrency, warns public of investment risk

The Securities and Exchange Commission (SEC) has issued a firm warning to the Nigerian public, urging them to steer clear of a cryptocurrency known as Punisher Coin, symbolized as $PUN, which it describes as unauthorized, unregulated, and potentially fraudulent.

In a statement released on Sunday from Lagos, the Commission condemned the ongoing online promotions and presale activities surrounding the digital asset, stating that neither the coin nor its promoters are registered to operate within Nigeria’s capital market framework.

“Our attention has been drawn to online promotions of an unauthorised presale for a cryptocurrency called PUNISHER COIN, also known as $PUN,” the statement read.

The SEC expressed deep concern over what it sees as deceptive efforts to attract unsuspecting investors, citing a particular media reference that elevated the profile of the controversial asset.

“Of particular concern is an article by Daily Trust E-Paper titled: ‘Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink.’”

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According to the Commission, early investigations reveal that $PUN is a “meme coin” — a type of cryptocurrency often created as a joke or internet trend, typically lacking any tangible utility, real-world application, or foundational technology.

“Further findings confirm $PUN is indeed a meme coin, typically without real-world value, purpose, or technical foundation backing its existence,” the SEC noted.

The regulatory body warned that such tokens are highly vulnerable to “pump and dump” schemes — manipulative strategies where the value of an asset is artificially inflated through hype or misinformation, only for insiders to dump their holdings at a peak, causing prices to crash and investors to lose money.

“The value of such coins is usually driven by hype, social media trends, or promotional efforts by their creators and community,” the statement explained.

“After the promoters sell and stop hyping, the coin’s value usually plummets, causing unsuspecting investors to lose money rapidly.”

Highlighting the speculative and manipulative nature of meme coins, the SEC emphasized that their valuation is based more on excitement and misleading claims than on solid financial fundamentals.

“SEC clarified that Punisher Coin and its promoters are neither registered nor approved to promote, launch, trade, or solicit investment from the Nigerian public.”

In light of these findings, the Commission is sounding the alarm to all would-be investors:

“The public is therefore strongly warned against participating in the presale of Punisher Coin, as any investment is entirely at one’s own risk.”

To protect themselves, Nigerians are urged to conduct proper due diligence and verify the legitimacy of any digital assets and their operators through the Commission’s official portal: (https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech operators/)

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