By Deborah Nnamdi
The Securities and Exchange Commission (SEC) has cautioned Nigerians against engaging with a digital token known as Shalom Coin (SHLM) or its promoters, warning that the project poses serious fraud risks.
In a statement released on Friday, the Commission said Shalom Coin is being marketed as an investment opportunity supposedly issued on the Ethereum Blockchain as an ERC-20 token.
Preliminary investigations, according to SEC, revealed that the token is being promoted on various online platforms and social media channels as a “meme coin” or community token, often accompanied by exaggerated claims of potential returns. The Commission added that the token’s smart contract allows its creators to alter key parameters such as trading permissions, transaction fees, and total supply—an indicator of possible manipulation.
SEC stressed that Shalom Coin and its promoters are not registered to operate in any capacity within the Nigerian capital market, nor has the Commission approved the token for issuance, trading, or public offering in the country.
Investors were therefore advised to exercise extreme caution and verify the legitimacy of any digital asset or trading platform via the SEC’s official website before committing funds.
The warning forms part of the Commission’s ongoing efforts to clamp down on unregulated crypto activities and safeguard the investing public.
In 2024, the SEC approved two licensed crypto exchanges—Quidax and Busha—under its regulatory framework. At the time, the Commission’s Director-General, Dr. Emomotimi Agama, reaffirmed its commitment to promoting innovation while protecting investors from fraudulent digital schemes and ensuring that all operators comply with established regulations.
