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SEC Raises Red Flag On Two Trending Crypto Schemes

By Benjamin Abioye

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SEC Samzuga GPT Zugacoin

Zugacoin and Samzuga GPT have been flagged by the SEC as unauthorized crypto assets, with the public being warned to avoid investing in the assets due to high risk and lack of regulation.

The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians, advising them not to invest in Zugacoin or Samzuga GPT.

According to the SEC, these cryptocurrencies are not approved or recognized by the regulatory body. They are operating without permission and are not registered to function in any form within Nigeria’s capital market.

“The Commission hereby informs the public that the promoters or issuers of Zugacoin and Samzuga GPT are not registered to operate in any capacity in the Nigerian Capital Market, and also Zugacoin and Samzuga GPT are not approved by the Commission for issuance to the public,” the SEC stated.

The commission noted an increase in online ads pushing these coins, including versions like SZCB and SZCB2. After looking into them, the SEC found that both tokens are meme coins. These types of coins usually have no real value, no practical use, and no solid project behind them. Their prices often rise only because of hype and promotions.

“Once the promoters dump their coins and stop hyping the coin, the coin price typically falls and investors lose money,” the SEC explained.

Because of this, the SEC has asked the public not to buy, trade, or advertise Zugacoin, Samzuga GPT, or any of their versions. They made it clear that anyone who chooses to invest in them does so entirely at their own risk.

To avoid falling victim to fraud, the SEC also urged investors to take proper steps before putting money into any digital asset. This includes checking if the promoters and the platforms they use are officially registered and approved.
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