In a surprising turn of events, the developer of the Solana-based memecoin Neiro has reportedly made a staggering $2.85 million profit, raising suspicions of an apparent rug pull. The developer’s profit, which represents an astonishing 5,169x return on an initial investment of just 3 SOL (worth over $550), has sent shockwaves through the crypto community.
According to a post by Lookonchain on July 28, the developer sold 68 million Neiro tokens for 15,511 SOL ($2.85 million) through multiple wallets. This transaction resulted in a realized profit of 15,508 SOL ($2.85 million). Additionally, the developer sent 10 million Neiro tokens to a dead wallet, leaving 19.5 million Neiro ($1.8 million) with an unrealized profit of $1.8 million. This sudden sell-off has fueled concerns of a rug pull, a term used to describe a fraudulent exit scam where insiders dump their tokens and exit the project, leaving investors at a loss.
As memecoins continue to capture the interest of traders, some experts believe the market could be gearing up for another surge. Popular memecoin trader Zack Ventura hinted at a potential “memecoin season,” pointing to the performance of top memecoins against Bitcoin since December 2023. Notably, the Solana-based Dogwifhat (WIF) saw a significant 41% weekly rally, reaching a new monthly high on July 18.
However, the rise of memecoins, particularly those launched by celebrities, has sparked debate about their impact on the crypto industry’s credibility. Many celebrity-backed tokens, such as JENNER, DAVIDO, and RICH, have seen dramatic price drops, with some losing over 66% of their value within a week of launch. The controversy surrounding these tokens, including Jason Derulo’s JASON and Andrew Tate’s Daddy Tate (DADDY), which faced insider trading allegations, raises questions about the long-term sustainability and legitimacy of the memecoin trend.
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