Neiro Token Soars Over 2,270% After Binance Spot Listing
Neiro Token Surges – One of the many Neiro tokens has made a significant leap, breaking into the top 15 meme coins by market capitalization. This surge followed its listing for spot trading on Binance, where the token skyrocketed from a market cap of $15 million to $352 million in just two days.
Background on Neiro and Meme Coins
Neiro is a newly adopted Shiba-Inu dog, owned by the person who was also the pet parent of Kabosu—the dog whose photo-turned-meme inspired Dogecoin. Kabosu passed away earlier this year, and upon the introduction of Neiro, a battle erupted among Solana meme coins vying for liquidity. Over time, an Ethereum-based Neiro token emerged, breaking into the top 25 meme coins after being listed for futures trading on Binance.
However, a week later, another Neiro token was listed on Binance, but this time for spot trading. Interestingly, this newly listed token is not one of the Solana-based Neiro coins, but another Ethereum token, known as Neiro CTO—short for community takeover.
Spot Trading vs. Futures Trading
The key difference between the Neiro tokens lies in their trading formats. The original Ethereum Neiro token was listed as a futures contract, which requires traders to buy or sell the asset at a specific time, quantity, and price. In contrast, Neiro CTO was listed for spot trading, allowing traders to buy and sell as they see fit according to the token’s current price. This flexibility has contributed to Neiro CTO’s rapid rise in market cap, as it surged over 2,270% in just 48 hours.
Binance’s Decision for Listing Neiro CTO
The decision to list Neiro CTO for spot trading, rather than the Ethereum Neiro token with a larger market cap, surprised many. Binance co-founder Yi Hi explained the reasoning in a blog post, stating:
“We listed several meme projects with relatively decentralized tokens and low market capitalization. Many of the other tokens failed due to compliance review and token concentration.”
On-chain analysis firm Bubblemaps pointed out that these failed tokens likely include the two Solana-based Neiro tokens, further explaining why the Ethereum Neiro token was only listed as a futures contract.
Token Concentration and Risks
A significant concern surrounding the original Ethereum-based Neiro token is the high level of token concentration. Bubblemaps had previously warned that 78% of the token’s supply was controlled by a few entities at launch. This raises the risk of a rug pull, where early investors could potentially sell off large portions of the token, causing its value to plummet. This issue of token concentration likely contributed to Binance’s decision to limit the token to futures trading, which is considered less risky than spot trading.
FAQ
How much did Neiro CTO increase in market capitalization after its Binance listing?
Neiro CTO’s market capitalization soared by over 2,270%, jumping from $15 million to $352 million in just two days.
What is the difference between spot trading and futures trading?
Spot trading allows traders to buy and sell assets at current market prices with flexibility, while futures trading involves contracts that specify a future time, quantity, and price for the transaction.
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