Tag: Memecoins

The Financial Conduct Authority (FCA) in the United Kingdom has issued a warning about the Solana-based “Retardio” project. The warning highlights concerns about unapproved financial promotions and activities for UK users.

According to an official report, the FCA urged UK-based users to rely only on financial firms authorized and approved by the watchdog. The agency further noted that authorizing a firm gives greater protection if things go wrong.

According to NFT aggregator CryptoSlam, the Retardio project includes a Solana-based NFT collection that has reportedly generated $31 million in total sales. Its linked memecoin, known by the ticker “Retardio,” is currently priced at approximately $0.08 and has a market capitalization of around $87 million, according to Dexscreener.

FCA Warns UK Citizens on Unauthorized Firms

The securities watchdog noted that UK users engaging with the Retardio project will not have access to the Financial Ombudsman Service, which resolves disputes between consumers and financial services firms.

The regulator also highlighted that consumers would not be covered by the Financial Services Compensation Scheme (FSCS), which provides protection when financial firms fail. The financial services regulator also advised users to consult their registry to verify that the company they interact with is authorized in the UK.

The agency also urged consumers to report unauthorized firms through its official channels. In response, the memecoin and NFT project claimed it had issued a warning against the UK’s financial regulator.

The FCA’s alert serves as a broader reminder for UK investors to exercise caution when dealing with crypto assets and blockchain-based projects, particularly those that operate without proper authorization.

UK Plans a Crypto Transparency

The latest report came as the UK plans to implement a comprehensive regulatory framework for crypto by 2026, signaling a significant step toward promoting transparency and consumer protection in the sector.

According to a Bloomberg report, consultations to draft regulations addressing market manipulation, trading platforms, crypto lending, and stablecoins, among other topics, will commence as early as this quarter.

The FCA also revealed that input from more than 100 entities spanning the crypto and traditional finance sectors has been gathered. Participants include digital asset platforms, financial institutions, trading companies, blockchain analytics providers, and major regulatory organizations such as the Treasury, the Bank of England, and the United States Securities and Exchange Commission (SEC).

The crypto market’s volatility has demonstrated its potential to generate life-changing wealth quickly.

According to recent data from Lookonchain, a blockchain analytics platform, a crypto trader has turned a $3,000 investment into a staggering $73 million profit, boasting an incredible 24,656x return in a year and 8 months.

Turning $3K into $73M, a 24,656x return, what a legend!

Before the market plummeted, $PEPE broke through $0.000028, setting a new #ATH!

This legendary trader sold another 100B $PEPE($2.8M) for profit.

This trader invested ~$3K to buy 4.91T $PEPE on Apr 15, 2023.

Over time, he… pic.twitter.com/Z46fT8dbiY

— Lookonchain (@lookonchain) December 10, 2024

Over $72 Million Profit in Less Than 24 Months

The trader’s winning strategy involved buying 4.91 trillion PEPE tokens on April 15, 2023. As the market surged, the trader made a partial exit, selling a portion of their PEPE holdings, cashing out 3.03 trillion PEPE tokens for a whopping $27.5 million.

But the trader didn’t stop there. Before the market plummeted, PEPE tokens broke through a new all-time high (ATH) of $0.000028. Seizing the opportunity, the investor sold an additional 100 billion PEPE tokens, worth $2.8 million, boosting their profit margins even higher.

The trader’s wallet currently holds 1.88 trillion PEPE tokens, valued at $45.66 million. Combined with their previous sell-offs, the investor’s total profit is an astonishing $73 million.

PEPE Traders Hit Jackpot

Launched in April 2023, the PEPE token is a meme coin that has gained significant attention and popularity within the crypto community, particularly on social media platforms, due to its strong and active community of supporters.

The rapid fluctuations in the token’s value and trading volume have made it popular among traders and investors looking for potential opportunities. On numerous occasions, the PEPE token has delivered impressive returns for traders who have accurately predicted market trends and executed their trades at the optimal moment.

In May, a crypto trader, known as ‘smart money,’ made a notable purchase of 142.96 billion PEPE tokens for $1.26 million at a unit price of $0.000008831.

The trader’s strategic approach yielded impressive results in six months, with six out of seven PEPE trades proving profitable, a remarkable win rate of 85.7%, and total profits of $915,000 at the time of the incident.

Another PEPE trader also made a staggering $46 million profit, a 15,718x return on investment, after purchasing 4.9 trillion PEPE tokens with an initial $3,000 investment on April 15, 2023.

Ethereum-based memecoin project Floki has announced the launch of its debit card, enabling users to spend their crypto assets worldwide. Partnering with Visa and Mastercard, the Floki team claims the debit card will become functional for users at millions of merchant locations.

Recall that the Floki team unveiled its expansion strategy in March, transitioning the project from a memecoin to a crypto ecosystem. This initiative includes introducing debit cards, staking services, and other innovative offerings. Additionally, the highly anticipated launch of Valhalla, a metaverse blockchain game, is part of this expansion effort.

Floki Launches Debit Card

The Floki team boasts the debit card will feature 0% transaction fees, 0% exchange rate fees, and support for over eight blockchain networks. Users can fund their cards directly with the FLOKI token or major digital assets like Bitcoin (BTC), Ether (ETH), Tether (USDT), Binance (BNB), and Solana (SOL). TON and its tokens, including DOGS, HMSTR, and NOT, can be used for funding.

Users have the option of physical and virtual Floki debit cards. Regarding pricing, the physical card incurs a one-time fee of €32, including shipping, while the virtual card costs €10. A 2% top-up fee applies to both options. While the physical card is currently available in 31 European countries, its twin product, the virtual card, will have a worldwide release.

However, both products are subject to certain geographic restrictions. They are not available for use in countries under economic sanctions by the Office of Foreign Assets Control (OFAC) or restricted by the issuing banks, Mastercard, or Visa.

Meanwhile, despite the latest development, the token’s price has remained relatively unchanged, with no significant market reaction observed following the announcement.

Not the First

Aside from Floki, several crypto projects have launched payment cards. These projects include Binance, Coinbase, BitPay, and Nexo. Recently, Layer-1 blockchain developer Avalanche Foundation launched a crypto Visa card.

These cards enable users to spend their crypto in real time, enhancing the accessibility and usability of digital assets. They further aid crypto adoption by simplifying transactions and providing users with greater flexibility. Users can expect more payment solutions to emerge as the industry grows, integrating digital assets into everyday life.

The revenue of the Solana-based memecoin creator platform Pump.fun has taken a significant hit, decreasing by 48.7%. According to DeFiLlama, the platform’s revenue skyrocketed to $5.31 million on November 24 but plummeted to $3.76 million the next day after the community backlash and halt of the controversial livestream feature.

As you may recall, Pump.fun’s live streams had gotten wild, with some token developers even harming themselves on stream for money. The halt on the livestream feature has likely led to a decline in user engagement and, subsequently, revenue. Since then, The platform has maintained a daily revenue range of over $3.5 million.

Regarding this rapid turn of events, DL News reported that Min Jung, a research analyst at Presto Labs, said:

“Many users have expressed fatigue with Pump.fun memecoins, and negative sentiment towards the platform has reached an all-time high.”

What Drives Pump.fun’s Revenue?

Interestingly, during the X (formerly Twitter) Space session last month, Pump.fun announced plans to launch a native token. The team further revealed that a portion of the token supply will be airdropped to early adopters to reward them for their support. However, no specific timeline for the token launch was provided.

The news was met with excitement within the community, with some believing that a well-executed airdrop could greatly enhance liquidity. Some crypto analysts have suggested that the airdrop should target top traders, developers, and other key participants, using metrics like trading volume and token performance to determine eligibility.

The anticipation of a potential airdrop drew many Solana users to Pump.fun, leading to increased volume and revenue for the token launch platform. However, the momentum was disrupted by the livestream saga.

Additionally, like the crypto market, the platform has been impacted by the United States political climate. Many Nationfi tokens, often associated with U.S. politics, have been created using Pump.fun. Other generated tokens like GOAT and PNUT have been listed in top exchanges, further increasing users’ interest in the platform.

Pump.fun Keeps Growing

Data from CoinMarketCap reveals that Pump.fun’s ecosystem tokens have reached a market capitalization of over $5 billion. The platform has also become the third-highest project by monthly revenue, closely approaching the levels of industry giants like Circle.

The team behind Pump.fun has consistently cashed out its revenue of over 1.52 million SOL, worth approximately $362 million. This significant revenue stream hints at the platform’s popularity and success in the crypto industry.

Changpeng Zhao (CZ), the co-founder of Binance, has expressed concerns over the growth of memecoins. In a recent post via X (formerly Twitter), he acknowledged support for memes but emphasized that the current meme sector is “getting a little weird.”

The crypto mogul further urged developers to harness the potential of blockchain technology to create meaningful solutions by prioritizing practical applications over memecoins. The post hints that CZ desires to promote a more mature and innovative crypto ecosystem. Worthy of note is the fact that he had earlier unfollowed the famous meme lord Elon Musk on X.

While CZ advocates for more attention to be given to utility projects instead of memes, some crypto users backlashed him, claiming Binance is not living up to his statement as it keeps listing memes. Meanwhile, in a recent post, CZ expressed his intentions to focus on education and transition to a more passive role in the crypto industry, prioritizing compliance and personal growth.

Is the Memecoin Sector Getting Weird?

The memecoin sector has taken a disturbing turn, as evidenced by the recent controversy surrounding Pump.fun, a Solana-based memecoin creation website. The platform’s livestream feature, intended for community engagement and entertainment, has devolved into a haven for explicit and violent content.

Reports of live streams featuring pornography, drug use, animal abuse, and even acts of terrorism have raised serious concerns about the platform’s moderation capabilities. The situation has become so dire that some users have threatened to harm themselves if their invested token fails to reach a specific market cap.

These disturbing incidents have resulted in calls for the platform to be regulated or shut down, further hinting that CZ may be right about memes becoming weird. The sector’s interest in irreverence and humor has escalated to a toxic culture that ignores the well-being of its participants. 

Notably, CZ’s comment comes after the Pump.fun team disabled the livestream feature amid the recent developments. Nonetheless, the platform has been making waves. Recently, the team sold off some of its revenue, realizing over $6 million. The protocol has also generated significant volume for Solana, playing a role in the blockchain’s surpassing $100 million in DEX volume.

The Shiba Inu (SHIB) community has been buzzing following recent claims made by Shytoshi Kusama, the lead developer of the popular memecoin. In a recent statement, Kusama noted that it is entirely possible to burn 99% of the circulating supply of SHIB but emphasized that there are more important price catalysts.

Kusama stated that burning 99% of SHIB seemed impossible a year ago, but with numerous projects uniting to tackle this monumental challenge, it is now within the realm of possibility.

Downsides of Increased Burn Drawbacks

In addition, the lead added a condition to the ambitious burn goal, noting that such a significant burn rate could only occur if more projects, or a few major ones, adopted the Shiba Inu ecosystem’s tech stack.

Meanwhile, the pseudonymous Shiba Inu lead pointed out that higher burn rates could affect the ecosystem. Kusama further noted that while burns increase, the price of SHIB could also rise.

Consequently, acquiring Shiba Inu could ultimately become too expensive, hindering the burn rates. The lead then stressed that burning SHIB isn’t the sole focus, highlighting that there are numerous other avenues for the Shiba Inu ecosystem to thrive.

While burning tokens can effectively impact a token’s value, it has its critics. Some argue that it is a speculative strategy that doesn’t guarantee long-term value growth, as it does not necessarily address the token’s adoption.

Means of Boosting Shiba Inu’s Price

Kusama also mentioned that promoting adoption is a more lasting approach to increasing Shiba Inu’s price and strengthening its ecosystem. The lead said that if the memecoin establishes a practical use case, the ecosystem will flourish to the point where users won’t need to burn their tokens.

Kusama had previously noted the crucial role of mainstream adoption for the Shiba Inu ecosystem. According to a report, the lead asserted that broader utility for Shiba Inu would drive up prices and attract major centralized exchanges to the ecosystem.  

The lead pointed out that the Shiba Inu ecosystem introduced liquid staking and other innovative features based on the premise of adoption. He also emphasized that developing new use cases for Shiba Inu and other tokens within the ecosystem is just as crucial.