Solana SOL/USD based meme coin Neiro NEIRO/USD has found itself at the center of a brewing controversy, as its developer appears to have made a swift and substantial profit.
What Happened: According to on-chain analyst Lookonchain, the developer behind Neiro raked in $2.85 million after converting 68 million Neiro tokens into SOL. The developer thus managed to turn 3 SOL into 15,501 SOL.
Such a massive profit, realized so quickly, has naturally raised eyebrows in the crypto community, with many speculating that this could be a classic case of a “rug pull.”
This term refers to a fraudulent scheme where project insiders cash out their holdings, leaving investors high and dry.
Neiro is a meme coin named after the newly-adopted dog of Kabosu’s owner, the dog behind the Dogecoin DOGE/USD meme.
Also Read: University Of Wyoming Launches First-Ever Academic Bitcoin Research Institute
Memecoin Mania Ignites Amidst Controversy
While the Neiro debacle unfolds, the broader meme coin market is showing signs of renewed vigor.
Renowned memecoin trader Zack Ventura has suggested that the sector could be on the cusp of a new bull run, comparing current market conditions to a similar period in late 2023.
Despite the overall market showing signs of recovery, not all meme coins are sharing in the gains.
Some, like Solana-based Dogwifhat WIF/USD, have surged, hitting a new monthly high on July 18 after a 41% weekly rally.
This propelled WIF into the top 50 cryptocurrencies by market capitalization.
However, the burgeoning meme coin ecosystem has also been marred by controversy.
The recent trend of celebrity-backed meme coins, while indicating increased mainstream interest, has also tarnished the industry’s reputation.
Tokens associated with the likes of Kylie Jenner, Davido and Jason Derulo have seen precipitous declines, with allegations of insider trading further eroding trust.
The Daddy Tate DADDY/USD meme coin, backed by the controversial influencer Andrew Tate, has also faced its share of scrutiny, with claims of insider buying before the token’s launch.
What’s Next: For further insights into the influence of meme coins, visit the upcoming Benzinga Future of Digital Assets event on Nov. 19.
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