PUBLIC ALERT: Nigerian SEC Flags Zugacoin and Samzuga GPT as Risky and Unregulated Crypto Ventures Without Market Approval

 

The Securities and Exchange Commission (SEC) of Nigeria has issued a strong warning to the public, advising against investing in Zugacoin and Samzuga GPT. These digital assets, according to the regulatory body, are being marketed and traded without any form of authorization or approval from the commission.

Growing concern surrounds the rapid increase in online advertisements and promotional campaigns pushing Zugacoin, especially under variant names like SZCB and SZCB2, as well as Samzuga GPT. These crypto assets have reportedly caught the attention of many unsuspecting investors, with promises of high returns and transformative technology.

Despite the hype, SEC officials clarified that neither of the assets, nor their promoters, have been registered or recognized within the Nigerian capital market ecosystem. The commission made it clear that operating or offering such assets to the public without proper registration violates established capital market regulations.

Citing early investigations, the SEC categorized Zugacoin and Samzuga GPT as meme coins. These types of cryptocurrencies typically lack fundamental value, practical applications, or backing by real-world projects. Instead, their worth often hinges on speculative enthusiasm driven by aggressive marketing, community sentiment, and the influence of online personalities or coin creators.

Meme coins, according to the SEC, are known for their volatility and susceptibility to manipulative trading practices. A particularly troubling trend, the commission noted, involves “pump and dump” schemes. These schemes begin with promoters artificially inflating the value of a coin through exaggerated claims and hype. Once the price reaches a peak and investor interest surges, the original promoters typically sell their holdings for profit. This mass sell-off causes the asset’s price to crash, leaving investors with significant losses.

The statement from the commission warned, “Once the promoters dump their coins and stop hyping the coin, the coin price typically falls and investors lose money.” Such patterns, they explained, are not only unethical but can lead to financial ruin for individuals who fall for the illusion of guaranteed profits.

Efforts by the SEC aim to protect Nigerians from falling victim to these risky ventures. The commission has consistently emphasized the importance of conducting thorough due diligence before engaging with any digital currency. Investors are advised to confirm that both the assets and their promoters are registered with the appropriate regulatory authorities.

Digital asset investments are increasingly becoming a focus for regulators worldwide, particularly in regions like Nigeria where the appetite for crypto-based wealth generation has grown. Many citizens, faced with economic uncertainty and inflation, are drawn to the seemingly lucrative returns promised by crypto schemes. However, regulators argue that unchecked enthusiasm can lead to exploitation when platforms operate outside legal frameworks.

The SEC reiterated its commitment to fostering a transparent and safe investment environment. While innovation in the financial space is encouraged, it must be accompanied by oversight, accountability, and legal compliance.

Public awareness is a critical tool in combating financial scams and irregular schemes, the commission emphasized. By educating investors and holding promoters accountable, regulatory agencies can help build a stronger, more secure financial market that supports innovation without compromising public interest.

Citizens are encouraged not only to avoid these specific assets but also to report any suspicious promotions or investment solicitations they come across. The commission also encouraged media outlets and community leaders to help spread verified information to reduce the spread of misinformation and prevent financial harm.

In conclusion, the SEC’s message is clear. Zugacoin, Samzuga GPT, and any of their associated variants are not recognized or approved in Nigeria’s official financial market. Anyone choosing to invest in these assets does so entirely at their own risk. The commission’s warning serves as a reminder that due diligence and regulatory compliance are essential in the digital investment world.