The Securities and Exchange Commission (SEC) has cautioned the public against investing in two crypto assets, Zugacoin and Samzuga GPT, labeling them as unauthorized and unregistered within Nigeria’s capital market.
In a statement released on Wednesday, the SEC revealed that neither the promoters nor issuers of these cryptocurrencies are registered to operate in any capacity within the Nigerian capital market. Furthermore, the Commission confirmed that Zugacoin and Samzuga GPT have not received approval for public issuance.
“Preliminary investigations show that ZUGACOIN and SAMZUGA GPT are meme coins, which generally lack a real use case, intrinsic value, or backing by tangible projects,” the statement explained. “The value attributed to meme coins often depends solely on their promoters or community efforts, making them highly vulnerable to pump-and-dump schemes. Such fraudulent activities involve promoters hyping the coin to inflate its price before dumping their holdings, leaving unsuspecting investors to suffer losses once the price collapses.”
The SEC strongly advised the public to avoid purchasing or promoting these cryptocurrencies, emphasizing that anyone investing in such schemes does so at their own risk.
The Commission also reminded investors to always verify the authenticity of crypto and digital assets, as well as the registration status of their promoters and trading platforms. This can be done via the SEC’s official fintech portal at https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/ or the main SEC website www.sec.gov.ng/cmos.
