The agency emphasized that these memecoons do not have internal value and practical options for use. Their value depends only on the efforts of their promoters advertising these tokens. SEC warned that they could turn out to be a pampa and dumpa scheme, when tokens emitted promoting crypto assets to increase their course. As soon as the tokens reach the peak, insiders sell their assets at an inflated price, and investors carry large financial losses.
“The promoters and issuers of Zugacoin and Samzuga GPT are not registered to work in the Nigerian capital market. Investors are recommended to refrain from buying these tokens and any of their options, since any person investing in such crypto schemes does it at their own peril and risk, ”said Nigerian SEC.
Interested in the excitement under the influence of promoters, investors become vulnerable to market manipulations with tokens, said SEC. The regulator recommended that people check the registration of cryptocurrency platforms through a special portal of the department before investing in any crypto project.
According to the new law on investment and securities of Nigeria from 2025, digital assets are officially considered the country securities and are under the control of the Sec. This means that cryptocurrencies and other suppliers of virtual assets are required to be registered in the department.
This month, the Nigerian regulator published a warning about the cryptocurrency project of Punisher Coin, which also does not have permission to work in the country.
Source: Bits
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