The Nigerian capital market regulator, the Security and Exchange Commission (SEC), has issued a warning against investing in $Davido meme coin or any other meme coin in the country. The SEC emphasized that investing in these meme coins carries a high level of risk for investors.

 This warning comes after popular Nigerian singer, David Adeleke, also known as Davido, entered the cryptocurrency market in May. Davido partnered with Phantom and Solana to launch $DAVIDO, which quickly gained popularity and surpassed a market value of $10, ranking number one on the DEX screener within 24 hours of its launch.

However, in an official statement released by SEC on Friday, the commission disclosed that its attention has been drawn to $Davido meme coin which is “allegedly linked to the popular Nigerian singer, David Adedeji Adeleke AKA Davido.”

The commission warned that meme coins have no capital representations and is not intended to serve as a medium of exchange, pointing out that it does not fall within the SEC’s regulatory purview.