Neiro Memecoin Developer Makes $2.85 Million Profit After Alleged Rug Pull

Bittime - The developer of the Solana-based memecoin Neiro recently made a profit of $2.85 million in an alleged rug pull case. The profits represented a return of 5,169 times their initial investment of just 3 SOL, which was worth more than $550 at the time.

Profitable Investment and Sales

According to a post on X on July 28 by Lookonchain, developer Neiro initially invested in the memecoin when launching the token contract. The developer sold 68 million $Neiro for 15,511 SOL ($2.85 million) through multiple wallets, and achieved a realized profit of 15,508 SOL ($2.85 million). Additionally, 10 million $Neiro was sent to the dead wallet, leaving 19.5 million $Neiro ($1.8 million) with an unrealized gain of $1.8 million.

Massive selling by developer wallets could be an indication of a rug pull, a scam in which project actors secretly sell most of their token allocation and then abandon the project.

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Memecoin Sector and Bullish Trend

Meanwhile, the memecoin sector as a whole may be entering its next bull cycle phase. According to famous memecoin trader Zack Ventura, the next memecoin season could start soon. In X's post on July 22, Ventura mentioned that the top memecoin index against Bitcoin, tracked since December 2023, is showing signs of an upcoming bullish move.

While memecoins haven't always moved holistically as an asset class, some tokens have still hit new record highs. For example, Solana-based Dogwifhat (WIF) set a new monthly record on July 18 after a weekly surge of more than 41%, returning it to the top 50 cryptocurrencies by market capitalization.

Memecoin's Impact On The Crypto Industry

Currently, many memecoins are being launched by celebrities, and while some see this as a sign of mainstream adoption, poor price performance of these tokens could damage the reputation of the crypto industry. The majority of celebrity-backed memecoins saw a drop of at least 66% in their first week of launch, including JENNER, DAVIDO, and RICH.

For example, the JASON token launched by American singer Jason Derulo was also hit by controversy in late June when analytics firm Bubblemaps claimed that Derulo sold thousands of dollars of the token despite claiming that he "WILL NEVER SELL."

Memecoin Daddy Tate (DADDY), launched by controversial former kickboxing champion Andrew Tate, was also caught up in insider trading allegations, as reported by Bubblemaps in an X post on June 12.

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Conclusion

The profits achieved by developer Neiro demonstrate the high potential risk in memecoin investments, where the practice of rug pulls can harm many investors. While the memecoin sector continues to grow, it is important for investors to be careful and conduct in-depth research before jumping into new, unknown projects.

With the continued dynamics in the memecoin world and the launch of new tokens, a deep understanding of the risks and potential rewards is essential for every crypto market participant.

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Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.