The Securities and Exchange Commission, SEC, has cautioned Nigerians against investing in a cryptocurrency called Punisher Coin, also known by the symbol $PUN.

In a statement issued on Sunday in Lagos, the SEC said the presale was unauthorised and lacked regulatory approval, resembling a Ponzi scheme. It added that the promoters of $PUN are not registered to operate in any capacity within Nigeria’s capital market.

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

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

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

It further noted that findings confirm $PUN is indeed a meme coin, typically without real-world value, purpose, or a technical foundation backing its existence.

According to the statement, the value of such coins is usually driven by hype, social media trends, or promotional efforts by its creators and community.

This makes them vulnerable to ‘pump and dump’ schemes, fraudulent tactics used to inflate and then crash a coin’s market price