Circular

The attention of the Securities and Exchange Commission (the Commission) has been drawn to online publications advertising unauthorized Crypto coins termed ZUGACOIN (with variants like SZCB and SZCB2) and SAMZUGA GPT.

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.

Preliminary investigations revealed that ZUGACOIN and SAMZUGA GPT are Meme coins. Meme coins generally have no use case, intrinsic value or tangible projects backing them. Any attributed value to meme coin is usually linked to its promoters or the community effort which most often than not are susceptible to pump and dump schemes (a form of fraudulent activity that involves promoters spreading false or misleading information to create a buying frenzy that “pumps” up the price of a ‘coin’ and then “dumps” the coin by selling their own coins at the inflated price. Once the promoters dump their coins and stop hyping the coin, the coin price typically falls and investors lose money).  

 Accordingly, the public is advised to refrain from engaging in the purchase or promotion of ZUGACOIN and SAMZUGA GPT or any of their variants as any person who invests in the scheme does so at his/her own risk.

The Commission similarly reminds the investing public of the need to always VERIFY the authenticity of crypto/virtual or digital assets, the registration status of their promoters and trading platforms via the Commission’s dedicated portal: https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/  or www.sec.gov.ng/cmos before engaging in any form of virtual or digital assets investment.

 SIGNED
MANAGEMENT