Neiro, a Solana-based developer of Mimecoin, has made $2.85 million by apparently spreading false information.
The developer wallet made $2.85 million in profit after generating over 5,169x its initial investment of 3 Solana (SOL) tokens worth $550.
According to Lookonchain’s July 28 X post, the developers initially invested in a Solana-based memecoin when deploying the token contract.
“He sold $68M Neiro for $15,511 SOL ($2.85M) through multiple wallets, resulting in a realized profit of $15,508 SOL ($2.85M). He also sent $10M Neiro to a dead wallet, leaving $19.5M Neiro ($1.8M), resulting in an unrealized profit of $1.8M!”
A developer wallet selling off their token holdings could be a sign of potential fraud. Fraud is crypto slang for an exit scam where an insider quietly sells off a significant portion of their token allocation and exits the project.
Related: Record $39.4 billion in Bitcoin open interest signals imminent price breakout
Memecoin season is just around the corner.
According to popular Mimecoin trader Jack Ventura, the entire Mimecoin sector is likely to witness the next phase of the bull cycle.
The merchant wrote in a post to X on July 22nd:
“This index is the top Mimecoins against Bitcoin, tracked since December 2023. The next leg-up Mimecoin season is loading.”
While Mimecoin as an asset class doesn’t always move as a whole, some tokens are still hitting new highs.
Solana-based Memecoin Dogwhipheart (WIF) hit a new monthly high on July 18, re-entering the top 50 cryptocurrencies by market cap after a weekly rally of over 41%.
Related: Vitalik Buterin Slams Celebrity Mimecoin
Is Mimecoin Undermining the Legitimacy of the Crypto Industry?
The current cycle has seen the debut of a number of celebrity-launched Memecoins. While some see this as a sign of mainstream adoption, the notorious underperformance of celebrity tokens is damaging the industry’s reputation.
Most of the celebrity-backed Mimecoins fell by at least 66% in their first week of launch, including the JENNER, DAVIDO, and RICH Mime tokens.
American singer Jason Derulo’s token also found itself embroiled in controversy in late June, when analytics firm Bubblemaps claimed that the singer had sold thousands of dollars worth of JASON tokens despite his claims that he “would never sell them.”
Daddy Tate (DADDY), a meme coin launched by controversial former kickboxing champion Andrew Tate, has also been embroiled in allegations of insider trading by Bubblemaps. June 12 X Post:
“Insiders bought 30% of the supply at launch before Andrew Tate started promoting X.”
magazine: Trump’s Bitcoin Push, Spot Ether ETF Debut, and More: Hodlers Digest, July 21-27