Neiro on Ethereum runs hot, but may be controlled by insiders
Neiro is a new meme token based on a newly adopted Shiba Inu dog. The meme launched a multitude of token versions on Solana and Ethereum, which fought for primacy in the last week.
Neiro on Ethereum turned into the new hot meme token, after gaining more volume and interest than the Solana-based version. The rapid rise of NEIRO to an all-time high led to speculations of potential market manipulation. On-chain research revealed NEIRO may be affected by a cluster of wallets.
Bubblemaps discovered not only the presence of wallet clusters, but also concentrated selling by insiders. NEIRO is already setting expectations of growing parabolic, but also creates fears of breaking down due to insider pressure. The meme token is showing signs of ‘buying the dip’ and already setting the first expectations of expanding to $1.
Despite the selling, NEIRO recovered to $0.22, and currently reveals only small private clusters. The formation of wallet clusters is not a fixed event, and conditions may change. The performance of NEIRO on Ethereum is key, since it aims to surpass the brand of SOL-based Neiro tokens and rival Ethereum-based versions.
The Solana-based version is not showing signs of high-activity wallet clusters, though it still reveals a whale wallet with more than 7% of the token supply.
The signs of NEIRO manipulation were seen as an attempt at raising unfounded fears. NEIRO was a token that managed to avoid the crash on all other markets. The new asset, with trading less than a week old, surpassed the performance of even older meme assets.
UPDATE: Insiders have now sold $6.5M of $NEIRO
Snipers of $NEIRO on ETH are continuously selling through hundreds of addresses used to disperse their bags
Average daily sales: $500k https://t.co/oTLJEMbFnG
— Bubblemaps (@bubblemaps) August 5, 2024
NEIRO rallied without a warning
The NEIRO on Ethereum rally happened just days after the launch of trading on Uniswap. This was the main reason for caution and watching out for more potential manipulation. NEIRO was also among the top gainers on Bitget, with a 76% daily gain.
The adoption of NEIRO is just starting out, with a mention from the LBank exchange. For now, NEIRO has not lined up among top memes, but the token is starting to gain liquidity on centralized exchanges. LBank pronounced NEIRO as part of the ‘ultimate crypto trio’ alongside DOGE and SHIB.
The chief advantage of the NEIRO token and its related brand is the slogan of ‘new doge, same legacy’. Neiro is the name of the new Shiba Inu dog adopted by the owner of Kabosu, the original meme dog. The big question for NEIRO is whether it would be able to solidify its position among dog-themed memes on Ethereum, or crash after the novelty wears out.
Bubblemaps warns that tokens with controlled supply rarely perform well, and are at a risk of selling and crashing the price. NEIRO still has a very limited depth and liquidity and may lose most of its value even with small-scale selling.
The project is also in the process of building a community with the goal of holding and content production, rather than selling. However, the presence of a wallet cluster or insiders may use the community as exit liquidity. The NEIRO token project has called its followers the Neiro Army and claims 12,000 already joined as buyers, based on blockchain wallet data.
Some of the holders also have wallets with exactly 5M tokens, as well as multiple wallets holding around 0.5% of the supply. Connected wallets are often made to look organic and may start selling under more liquid conditions.
As of August 1, NEIRO was held in just 9,300 wallets. The asset also only took six days to surpass $200M in market capitalization, becoming a more viral sensation than PEPE. The Neiro_ethereum handle also has 21.5K followers already, with more than 9K Telegram supporters.
According to Dextools, buying continued for NEIRO as the price attempted to go above $0.22. NEIRO has a 90.5% voting confidence score on Dextools. Transferring the token does not incur tax for the team. The total supply of NEIRO is only 1B tokens, with all of them launched and unlocked. However, this does not prevent the creation of insider liquidity, especially in a brand-new market at a relatively low price.
Cryptopolitan reporting by Hristina Vasileva
