The Securities and Exchange Commission (SEC) Nigeria has issued an official alert cautioning investors about a digital asset called Shalom Coin (SHLM), which is being marketed via social media as a speculative investment opportunity.
In a statement on Friday, the SEC disclosed that promoters of SHLM are not registered with the Commission and that the token itself is not approved for issuance, trading, or offering to the public in Nigeria.
What’s Suspicious About SHLM?
- Mutable Smart Contract Features
The SEC warns SHLM’s smart contract includes adjustable parameters, allowing the issuer to change trading permissions, transaction fees, or total token supply — features commonly associated with risky or fraudulent schemes. - Speculative Marketing Claims
The token is being promoted as a “community token” or “meme coin” with exaggerated promises of high returns — without credible backing or transparency. - No Regulatory Approval
Neither SHLM nor its promoters are registered in Nigeria’s capital market. The SEC emphasized that engaging with such unregistered digital assets is done at the investor’s own risk.
Advice from the SEC
The SEC strongly advises the public to:
- Verify registration status of any digital asset or operator via its official website (www.sec.gov.ng/cmos) before investing.
- Exercise maximum caution when dealing with new or unverified crypto tokens or promoters.
- Recognize that any investment in SHLM would currently be unsecured and unregulated, with high potential for loss.
See more related: Reps Panel Urges SEC to Rethink ₦1B Capital Benchmark for Crypto Operators
Implications for Nigeria’s Crypto Ecosystem
- This alert reinforces a pattern: regulators in Nigeria are increasingly vigilant about fraudulent crypto launches and unverified tokens.
- It may also pressure exchanges and platforms to conduct stronger due diligence and delisting of high-risk tokens.
- For investors, it underscores the importance of on-chain audits, contract reviews, and regulatory verification before participating in new crypto projects.
