Say No To Solana Memecoins — UK Govt Loses Cool on Recent Pump

Key Takeaways:

• The FCA flagged Solana-based Retardio for unauthorized financial promotions.
• UK investors are not protected under FSCS or the Financial Ombudsman Service.
• Retardio’s market cap stands at $87 million despite regulatory warnings.

YEREVAN (CoinChapter.com) — The United Kingdom’s Financial Conduct Authority (FCA) has warned UK citizens against the Solana-based memecoin Retardio, highlighting unauthorized financial promotions. The FCA emphasized risks to consumers engaging with unapproved financial activities.

FCA Issues Warning on Solana-Based Retardio Token

On Dec. 16, the FCA flagged the Retardio token, built on Solana, for potentially offering financial services without authorization. The regulator urged consumers to deal only with FCA-approved firms to ensure financial safety and protection.

Retardio is connected to an NFT project that reportedly achieved $31 million in lifetime sales, as per CryptoSlam. Meanwhile, the Retardio token, trading at $0.08, has a market capitalization of approximately $87 million, according to Dexscreener.

UK Investors Lack Financial Protections

The FCA reminded UK consumers that unauthorized projects like Retardio do not provide access to the Financial Ombudsman Service. This service helps settle disputes between consumers and financial firms.

Additionally, investors are not protected under the Financial Services Compensation Scheme (FSCS), which compensates consumers when authorized financial firms collapse. The FCA warned,

“It’s unlikely you’d get your money back if the firm goes out of business.”

The agency urged consumers to verify firms through its official registry and report unauthorized financial promotions via official FCA channels.

Retardio Project’s Reaction to the FCA Warning

The Retardio project responded with humor, claiming it had “issued a warning against the UK’s financial regulator.” Despite the sarcastic reaction, the FCA’s warning remains clear about the risks of unregulated financial activities.

Memecoins Reflect Growing Web3 Attention

Memecoins like Retardio continue to gain attention in the Web3 ecosystem. According to Yat Siu, Chairman of Animoca Brands, memecoins reflect the value of user attention. He explained that, unlike traditional social media metrics, memecoins’ market values demonstrate the attention they attract.

Siu added,

“If attention was a token, that’s basically what memecoins represent.”

He noted that user-generated content plays a central role in Web3 projects like Retardio.