They came wrapped in the promise of innovation—ZUGACOIN and SAMZUGA GPT—touted by flashy promoters and viral buzz.
But behind the digital glitz lies a troubling truth.
Nigeria’s Securities and Exchange Commission has declared both coins unapproved and warned they may be vehicles for risky pump-and-dump schemes.
With no tangible value or registered backing, the SEC urges Nigerians to think twice before jumping on the hype.
Unregistered Promoters
In its latest notice, the Commission identified the promoters of these coins as unregistered and unauthorised to operate within Nigeria’s capital market.
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Furthermore, it classified both as meme coins—digital assets with no real-world use, intrinsic value or credible project backing.
Pump And Dump Risks
Importantly, the SEC highlighted that promoters often drive such coins through hype and online community engagement.
Consequently, this tactic frequently leads to “pump and dump” schemes, where promoters inflate prices, sell off their holdings for profit, and leave late investors with steep losses after values collapse.
Therefore, the Commission firmly advised the public to stop purchasing or promoting ZUGACOIN and SAMZUGA GPT or any of their variants, stressing that investors bear full responsibility for any resulting losses.
Verify Before Investing
To stay protected, the SEC urged investors to actively verify the legitimacy of digital assets and check the registration status of their promoters and trading platforms via its official portals: sec.gov.ng or Fintech Hub.
Since enacting the Investment and Securities Act 2025, the SEC has expanded its oversight to include digital assets.
Recently, it also flagged PUNISHER COIN (SPUN), PWAN, PWAN MAX and Silverkuun Investment Cooperative Society—part of its drive to safeguard investors and maintain market integrity.
