FG warns against investing in Davido's crypto token, "Timeless Davido" ($DAVIDO), citing high risk. SEC emphasizes the speculative nature of meme coins, advising caution due to lack of regulatory oversight. Investors urged to carefully consider implications before engaging with such digital assets.
The Nigerian Federal Government has issued a stern warning against investing in the crypto token associated with music icon Davido, known as "Timeless Davido" ($DAVIDO). Initially gaining rapid market traction, the meme coin surged to a $10 million market cap before facing a sharp decline amid investor scrutiny.
Responding to the phenomenon, the Securities and Exchange Commission (SEC) emphasized that meme coins like $Davido lack intrinsic value and are speculative. SEC clarified that such tokens do not fall within its regulatory framework for investment products or asset classes, cautioning the public against potential risks associated with these speculative cryptocurrencies.
