Rising Concerns Over Neiro Crypto: Potential ‘Pump and Dump’ Scheme

Neiro crypto, a newly launched memecoin on the Solana blockchain, has quickly become a topic of concern among investors. Within 24 hours of its release, signs have emerged suggesting the possibility of a scam. The developer’s actions, including large-scale token sales and suspicious transactions, have raised red flags in the cryptocurrency community.

Data from Lookonchain reveals that the Neiro crypto developer acquired 97.5 million tokens for just 3 SOL. Subsequently, the developer sold 68 million tokens, netting approximately $2.85 million in the process. This sale involved multiple wallets, which adds to the suspicion. In addition, the developer transferred 10 million tokens to a dead wallet, effectively removing them from circulation. They also retained 19.5 million tokens, representing an unrealized profit of around $1.8 million.

This series of transactions has led to concerns of potential market manipulation, commonly seen in “pump and dump” schemes. Such schemes involve artificially inflating a cryptocurrency’s price before selling off large holdings at the peak, leaving other investors with losses.

The price trend of Neiro crypto has been notably volatile since its launch on July 29. Initially priced at approximately $0.05, the coin surged to nearly $0.08. However, recent trading sessions have seen a decline, with the price around $0.04. This downturn follows the controversial actions of the developer, raising further suspicion.

Despite the price drop, Neiro crypto has maintained significant trading volume, exceeding $125 million. Its market cap remains over $46 million, indicating continued market activity. This sustained interest may be driven by speculation rather than confidence in the token’s value.

The situation with Neiro crypto highlights the need for caution among potential investors. The developer’s profit-taking and questionable behavior cast doubt on the coin’s legitimacy. Nevertheless, the broader market for memecoins on the Solana blockchain continues to grow. This growth contributes to an overall increase in trading volume within the Solana ecosystem.