The Nigerian Securities and Exchange Commission (SEC) has issued a cautionary notice to the public regarding involvement with the digital token known as “Shalom Coin (SHLM)” and its promoters, highlighting significant concerns about potential fraudulent activities.
In an official statement released on Friday, the SEC clarified that SHLM is being marketed as an investment vehicle, allegedly launched on the Ethereum Blockchain as an ERC-20 token.
“The Securities and Exchange Commission, Nigeria, has become aware of certain cryptocurrency promoters advertising a digital token called ‘Shalom Coin (SHLM)’ as an investment opportunity, purportedly issued on the Ethereum Blockchain as an ERC-20 token,” the announcement reads in part.
Insights from Preliminary Investigations
- Initial inquiries reveal that “Shalom Coin (SHLM)” is actively promoted on various online platforms and social media as a “meme coin” or community-driven token, often accompanied by speculative promises of high returns.
“Further analysis indicates that the token’s smart contract allows the issuer to alter key elements such as trading permissions, transaction fees, and the total supply of tokens,” the SEC highlighted.
- The Commission emphasized that these characteristics significantly elevate the risk of fraudulent schemes associated with this crypto asset.
- Additionally, the SEC confirmed that neither the promoters nor the issuers of “Shalom Coin (SHLM)” hold any registration or authorization to operate within Nigeria’s capital market framework.
“Therefore, ‘Shalom Coin (SHLM)’ is not sanctioned by the Commission for issuance, trading, or public offering within Nigeria,” the statement concluded.
- Investors are strongly urged to exercise extreme caution when dealing with “Shalom Coin (SHLM)” or any other unregistered digital tokens, as any investment in such assets carries inherent risks borne solely by the investor.
The SEC also reminded the public to verify the legitimacy of any digital asset, its promoters, and associated trading platforms by consulting the Commission’s official registry at www.sec.gov.ng/cmos before making any investment decisions.
Key Information for Investors
This advisory aligns with the SEC’s ongoing mandate to regulate and take enforcement actions against unauthorized individuals and entities, including cryptocurrency exchanges operating without proper approval in Nigeria.
In 2024, SEC’s Director-General, Dr. Emomotimi Agama, reiterated the Commission’s commitment to safeguarding investors’ interests.
Earlier this year, the SEC granted provisional approval to two cryptocurrency exchanges, Quidax and Busha, marking the first platforms to be officially regulated under Nigerian law.
Dr. Agama noted that while the SEC has received numerous applications from crypto exchanges, only those meeting stringent regulatory criteria will be authorized to operate.
He further emphasized the importance of protecting citizens from deceptive practices and misinformation within the digital asset ecosystem.
According to Dr. Agama, continuous oversight of crypto exchanges is essential to ensure their activities do not disrupt the broader economy.
While fostering innovation in the financial technology space, the SEC remains dedicated to maintaining a transparent and well-regulated market environment.