The developer of Neiro meme coin has reportedly made a $2.85 million profit through what appears to be a rug pull, raising concerns about the legitimacy of meme coins.
Points
- Neiro developer made $2.85 million in profit after selling 68 million tokens.
- The initial investment was 3 SOL, worth over $550, resulting in a 5,169x return.
- The developer burned 10 million tokens, retaining an unrealized profit of $1.8 million.
- The incident raises concerns about the security and legitimacy of meme coins.
- The meme coin sector remains highly speculative and risky.
The developer of Neiro, a newly launched meme coin, has reportedly made a substantial profit through an apparent rug pull, a type of exit scam in the cryptocurrency world. According to data from Lookonchain, the developer initially acquired 97.5 million Neiro tokens for just 3 SOL, equivalent to approximately $550.
Following a surge in the token’s price, the developer sold 68 million Neiro tokens for 15,511 SOL, or roughly $2.85 million. This transaction resulted in a staggering profit of 15,508 SOL, representing a 5,169x return on the initial investment. Additionally, the developer burned 10 million Neiro tokens, which involves sending them to a dead wallet, effectively reducing the circulating supply. The developer still holds 19.5 million tokens, with an unrealized profit of approximately $1.8 million.
This incident has raised significant concerns about the security and legitimacy of meme coins, which are often seen as highly speculative and risky investments. The developer’s actions suggest a potential rug pull, where insiders quietly sell a large part of their
token allocation and exit the project, leaving investors with worthless assets. This type of scam has become increasingly common in the meme coin sector, highlighting the need for caution and due diligence among investors.
Meme Coin Season Could Be Just Around the Corner
Despite the risks, the meme coin sector continues to attract interest from investors looking for high returns. Popular meme coin trader Zack Ventura has suggested that the next phase of the bull cycle for meme coins might be imminent. According to Ventura, meme coins don’t always move holistically as an asset class, but some tokens are still soaring to new all-time highs.
For example, the Solana-based Dogwifhat （WIF） token hit a new monthly high on July 18, after a 41% weekly rally brought it back into the top 50 largest cryptocurrencies by market capitalization. This demonstrates that, while the sector is fraught with risks, there are still opportunities for significant gains.
Are Memecoins Hurting the Legitimacy of the Crypto Industry?
The rise of meme coins, particularly those backed by celebrities, has sparked debate over their impact on the legitimacy of the broader cryptocurrency industry. Many celebrity-launched meme coins have performed poorly, with the majority falling at least 66% within the first week of their launch. Examples include JENNER, DAVIDO, and RICH.
American singer Jason Derulo’s JASON token faced controversy in June when analytics firm Bubblemaps accused Derulo of selling thousands of dollars worth of the token despite his public claims that he “WILL NEVER SELL.” Similarly, the Daddy Tate （DADDY） meme coin, launched by controversial former kickboxing champion Andrew Tate, was hit by insider trading allegations. Bubblemaps reported that insiders bought 30% of the supply at launch before Tate started promoting it on X.
These incidents illustrate the potential for market manipulation and the challenges of maintaining trust in the crypto industry. Investors are advised to be cautious and to conduct thorough research before investing in meme coins, which remain highly speculative and subject to sudden price fluctuations.
解説
- The Neiro incident underscores the risks associated with investing in meme coins, highlighting the potential for scams like rug pulls.
- Despite these risks, the meme coin sector continues to attract investors, with some tokens achieving significant gains.
- The controversy surrounding celebrity-backed meme coins raises questions about their impact on the legitimacy of the crypto industry.
- Investors should exercise caution and perform due diligence when investing in meme coins, considering their speculative nature and potential for manipulation.