UK’s FCA warns citizens to avoid Solana-based meme coin

The Financial Conduct Authority (FCA) in the U.K. has issued a public notice aimed at the Solana meme coin Retardio. FCA alleges that this entity may be offering or endorsing financial services or products without the necessary authorization.

According to FCA, using the meme coin disqualifies investors from contacting the Financial Ombudsman Service which provides a service that settles complaints between consumers and businesses that provide financial services.

Also, Retardio buyers are similarly not covered by the Financial Services Compensation Scheme that comes into play if the financial firm used goes out of business and can’t pay the claim. The entity can step in to pay compensation.

FCA asserted, “You should avoid dealing with this firm and beware of scams.”

Still, the Retardio community seemed to take the matter lightly as they responded with memes on social media.

Retardio memecoin on Solana

Immediately following the FCA’s notification, the token experienced a 17% decline in value, following a previous peak of approximately $240 million. The Retardio project includes a non-fungible token (NFT) collection based on Solana, with a lifetime sales total of $31 million, as reported by CryptoSlam.

Dexscreener also estimates that the linked meme coin, “Retardio,” is worth approximately $0.08 and has a market cap of approximately $87 million. The FCA urged its citizens to only conduct business with authorized organizations. 

The regulator stated that authorized firms provide consumers with more protection in the event of an incident. In addition, FCA stated that consumers can verify the authorization of the company they are doing business with by consulting its registry. 

The meme coin and NFT project, however, humorously responded to the FCA, stating that it had “issued a warning against the UK’s financial regulator.” 

FCA tightens regulations amidst becoming a crypto hub

Early this year, the U.K.’s FCA planned to focus on increasing its capabilities in detecting and pursuing market abuse in the crypto sector and assisting in delivering a proportionate market abuse regime for the asset class for the whole year.

Additionally, the financial regulator declared that it would implement advanced analytics capabilities, such as cross-asset class visualizations and network analysis. The regulator also stated that it will enhance its consumer awareness campaigns to inform investors about fraud.

On the other hand, the UK committed itself to taking the U.S. on as a global crypto hub. The doubts are still there as the FCA issued a comparable notification regarding the meme coin launchpad – Pump.fun in the early part of December.

Pump.fun subsequently restricted platform access for users in the United Kingdom. 

Previously, crypto investors ran off from the US. With the new pro-crypto administration, crypto investors are looking for ways to go back to the US. Is the UK going to replace the US with unfriendly regulations? 

Solana-based meme coins 

Generally, meme coins have been doing well in the current market. The risks are steep, but so is the upside. Memecoins are volatile, unpredictable, and yet undeniably relevant.

Solana offers an appealing substitute for Ethereum. Its scalability and speed enable meme coin developers to establish cost-effective and rapid ecosystems, which in turn facilitates more frequent transactions and broader adoption.     

Built on the Solana blockchain, BONK capitalizes on the network’s speed and scalability. 

Pump.fun, for example, is also lighting up Solana’s activity charts, and meme coin communities on X and Discord are driving the momentum. Despite these benefits, Solana meme coin’s network’s security and reliability have been a source of concern due to its relatively centralized make. 

Pump.fun experienced a decline in its weekly revenue as a result of the disabling of its live stream feature in response to allegations of detrimental content being broadcast. Such issues have caused discouraged users from investing.

I am not against memes, but meme coins are getting "a little" weird now.

Let's build real applications using blockchain.

— CZ 🔶 BNB (@cz_binance) November 26, 2024

Additionally, the extensive liquidity and developer support that is available on Ethereum are frequently absent from Solana meme coins. 

Although Solana has succeeded in attracting retail investors through its efficiency, the absence of robust utility restricts the long-term viability of its meme coin ecosystem.

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