FCA Warns Against Solana-Based Meme Coin Retardio

Key Takeaways

• The regulator further advised consumers to avoid engaging with the project
• FCA noted that since Retardio is not authorized, users interacting using it are not eligible for protection under the Financial Ombudsman Service or FSCS.

The UK’s Financial Conduct Authority (FCA) has issued a notice regarding Retardio, a Solana-based meme coin cautioning that the platform is not authorized to offer financial services in the UK. The regulator further advised consumers to avoid engaging with the project and to remain vigilant against potential scams.

In its statement, the FCA reiterated that firms providing or promoting financial services in the UK must obtain proper authorization. FCA noted that since Retardio is not authorized, users interacting with the platform are not eligible for protection under the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS). This means investors may not recover their funds if the project becomes insolvent.

The FCA’s notice stated that individuals dealing with unauthorized firms are exposed to heightened vulnerabilities, particularly as these entities operate outside the scope of consumer protection frameworks. The regulator has recommended that the public avoid interacting with Retardio entirely.

Despite the warning, Retardio’s token saw a price increase of 16%, bringing its total market capitalization to $111 million, though it remains below a previous high of $240 million. The token’s price rose to $0.09011 following the FCA announcement. The project, which markets itself as a digital collectible, has cultivated a following of over 11,000 members on Telegram and offers an NFT collection titled “Retardio Cousins,” available on the Magic Eden platform.

Retardio responded to the warning with a humorous social media post featuring a meme of Jeff Bezos in a clown costume and the caption, “The Bezos Cabal send their regards.” 

This warning is part of the FCA’s broader efforts to regulate the digital asset sector. The regulator has been tightening its oversight in recent months, including proposing new rules to ban public crypto offerings by unauthorized firms. A recently published discussion paper by the FCA also seeks industry feedback on shaping a regulatory framework for digital assets.

The financial watchdog has been expanding its capacity to oversee the cryptocurrency sector, increasing its crypto-focused staff to over 100 members. 

In addition to Retardio, the FCA recently issued a similar warning against Pump.fun, a meme coin launchpad operating without authorization. Pump.fun, which allows users to create and launch tokens without coding knowledge, has reportedly generated $315.6 million in revenue since its launch in January 2024. Like Retardio, Pump.fun’s users are not covered by the Financial Ombudsman Service or FSCS.

The latest development comes amid a FCA research paper stating that crypto ownership in the UK has surged to 12% of the adult population, up from 10% in 2023. As per the report, crypto awareness also reached 93% of UK adults while the average value of holdings increased from £1,595 to £1,842.