Neiro Memecoin Developer Nets $2.85M: Is This Another Rug Pull?

Neiro Memecoin Developer Suspected of $2.85M Exit Scam

Neiro Memecoin Developer Nets $2.85M – The developer of the Solana-based Neiro memecoin has reportedly made a substantial profit of $2.85 million in what appears to be a rug pull. The developer wallet achieved this profit by realizing an over 5,169-fold return on an initial investment of merely three Solana (SOL) tokens, worth approximately $550.

Details of the Alleged Rug Pull

According to a July 28 X post by Lookonchain, the developer sold 68 million $Neiro tokens for 15,511 SOL, which equates to $2.85 million, through multiple wallets. This sale resulted in a realized profit of 15,508 SOL ($2.85 million). Additionally, the developer transferred 10 million $Neiro to a dead wallet, leaving 19.5 million $Neiro, valued at $1.8 million, as an unrealized profit.

The developer wallet selling its holdings is indicative of a potential rug pull, a term in the crypto world referring to an exit scam where insiders sell a significant portion of their token allocation and then abandon the project.

Memecoin Market Trends

While the Neiro memecoin incident unfolds, the broader memecoin market is witnessing notable activity. According to popular memecoin trader Zack Ventura, the next phase of the bull cycle for memecoins might be imminent. In a July 22 X post, Ventura wrote, “This index is the top memecoins against Bitcoin, tracing back from December 2023. Next leg up memecoin season is loading.”

Despite the erratic performance of memecoins as a whole, some tokens are achieving new all-time highs. For instance, the Solana-based memecoin Dogwifhat (WIF) reached a new monthly high on July 18, following a 41% weekly rally that propelled it back into the top 50 largest cryptocurrencies by market capitalization.

Impact on the Crypto Industry’s Legitimacy

The proliferation of memecoins, especially those launched by celebrities, is a double-edged sword for the crypto industry. On one hand, they signify mainstream adoption; on the other hand, their poor price performance tarnishes the industry’s reputation. Many celebrity-backed memecoins, including JENNER, DAVIDO, and RICH tokens, plummeted by at least 66% within the first week of their launch.

Further controversy arose at the end of June when analytics firm Bubblemaps accused American singer Jason Derulo of selling thousands of dollars worth of his JASON token despite his public claims that he “WILL NEVER SELL.”

Similarly, the Daddy Tate (DADDY) memecoin, launched by former kickboxing champion Andrew Tate, faced insider trading allegations. A June 12 X post by Bubblemaps claimed that insiders bought 30% of the supply at launch before Andrew Tate began promoting it on X.

FAQ: Neiro Memecoin Rug Pull Incident

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