By Seun Ibiyemi
The Securities and Exchange Commission (SEC) of Nigeria has cautioned the public against investing in a digital token known as “Shalom Coin (SHLM)”, citing high risks of fraud and lack of regulatory approval.
In a disclaimer issued over the weekend, the Commission stated that Shalom Coin is being promoted as an investment opportunity allegedly issued on the Ethereum Blockchain as an ERC-20 token, but warned that the asset and its promoters are not registered with the SEC to operate in the Nigerian capital market.
“The attention of the Securities and Exchange Commission, Nigeria (‘the Commission’) has been drawn to the activities of certain cryptocurrency promoters advertising a digital token known as ‘Shalom Coin (SHLM)’ as an investment opportunity purportedly issued on the Ethereum Blockchain,” the SEC said.
According to the Commission, preliminary investigations revealed that the token is being promoted across online channels and social media as a “meme coin” or community token, often accompanied by speculative claims of potential investment returns.
The SEC further disclosed that findings from its review showed that Shalom Coin’s smart contract includes features that allow the issuer or creator to alter key parameters such as trading permissions, transaction fees, and total token supply characteristics the regulator said significantly heighten the risk of manipulation and fraud.
“Developments associated with the purported token make the risk of potentially fraudulent crypto-asset schemes very high,” the Commission noted.
The SEC emphasised that Shalom Coin (SHLM) has not been approved for issuance, trading, or offering to the investing public in Nigeria, and that the individuals or entities behind it are not recognised operators in the country’s capital market.
Consequently, the regulator urged Nigerians to exercise extreme caution when dealing with Shalom Coin or any other unregistered digital asset, warning that investors who engage in such schemes do so entirely at their own risk.
The Commission also reminded investors to verify the authenticity of any digital asset, its promoters, or trading platforms through its official website, www.sec.gov.ng/cmos, before committing funds.
This latest warning comes amid growing regulatory scrutiny of cryptocurrency-related activities in Nigeria, as authorities intensify efforts to protect investors from fraudulent and unlicensed operators in the digital asset space.