Did Neiro’s Alleged Plan to Leverage Vitalik's Popularity Backfire as Token Plummets 60% After He Sold All Holdings?

Neiro Pumped, Vitalik Dumped

A relatively new meme coin, Neiro, executed a strategic transfer of 17.1 billion Neiros (specifically, 17,145,414,663 tokens), representing 4% of the total supply, to Vitalik Buterin's address via a deployment address.

Multiple crypto sleuths reported on this dump as well.

Is this move intended to generate hype by positioning Vitalik as the largest holder and to leverage his high profile to enhance the coin's credibility?

The strategy backfired when Vitalik promptly sold his entire allocation of the meme coin for 44.5 ETH, valued at $112,500 according to Etherscan data, within just an hour.

This triggered a cascade of sell-offs, causing Neiro's price to plummet by 60% and sending shockwaves through the investor and holder community.

In the aftermath, the Neiro team reached out to Buterin on X, requesting that he donate a portion of the proceeds to a stray dog shelter.

The Neiro project had established a strategic reserve to hold tokens for potential centralised exchange (CEX) listings and to make charitable contributions to stray dog shelters and other foundations combating animal abuse.

On 4 August, Neiro reported receiving a donation of almost $1,600 from contributors, which was subsequently sent to a stray dog shelter in Japan.

This shelter was the home of the rescued Neiro dog, the inspiration behind the meme coin.

CoinGecko data indicates that Neiro's value fell from $0.022 to $0.013 before rebounding slightly to $0.015.

Nonetheless, the meme token has since shown signs of recovery, currently trading at $0.0237, marking a 37% decrease in the last 24 hours.

This episode underscores the risks inherent in investing in meme coins, which are characterised by high volatility and susceptibility to market manipulations.

Which is the Real Neiro or Are They All Real?

As NEIRO garners significant attention from the cryptocurrency community, it has unfortunately become a target for scammers to initiate fraudulent activities and capitalise on the hype.

While there are multiple meme coins with the name Neiro circulating in the market, the one associated with the recent event is the Neiro on the Ethereum blockchain that Vitalik sold.

There are four distinct NEIRO tokens listed on CoinGecko, at least six variations on Uniswap, and numerous potentially deceptive Neiro-related accounts on X.

Kabosu's owner has publicly stated that she has not endorsed any of these tokens, and only the original Doge creators have her permission to use her pet's photo for their projects.

On 28 July, the developer of a Solana-based version of Neiro reportedly made a profit of $2.85 million in what appears to be a rug pull scheme.

This profit amounts to a staggering 5,169 times return on their initial investment of just 3 SOL, valued at over $550.

The developer's investment in the memecoin coincided with the deployment of the token contract, as indicated in an X post by Lookonchain.

The project's liquidity almost vanished after the developer executed the rug pull.

The original NEIRO was officially launched on the Ethereum blockchain.

However, an independent blockchain investigator, Wazz, has raised red flags about the NEIRO token on the Ethereum Blockchain, suggesting it could be a 'honey pot' scam.

Wazz points out that the token's configuration includes suspicious mechanisms that evade automated security scans but could pose substantial risks to investors by restricting new buyers from selling.

According to Wazz, a specific Neiro meme token with the Ethereum blockchain address "0x3ad4f189f08cdc60496eeBb3bd70B90dF28B7455" is identified as a honeypot scam.

This revelation has sparked a broader debate on the ethics of such significant transactions and the potential implications, particularly when influential figures like Vitalik are involved.

Neiro in the Spotlight

Neiro has captured the attention of numerous traders, investors, and holders, prompting discussions about its stability and the future trajectory of the token.

The situation has also fuelled debates on the ethical implications of marketing strategies within the cryptocurrency space.

Vitalik’s sale of $Neiro has undoubtedly dealt a harsh blow to the community.

Nevertheless, the NEIRO community has demonstrated resilience, and the token continues to exhibit growth potential.

Although it experienced a significant 60% drop, it has shown signs of rebounding.

It is important to note, however, that some unconfirmed red flags have been raised regarding NEIRO.

It is prudent to monitor the situation and observe how the token navigates these concerns before making any hasty decisions.