Ethereum’s Neiro Token Surge: A New Meme Darling or a Pump and Dump?
In early September, Bitcoin (BTC) dropped to $53,000, its lowest since August 7. Major indices, including the Nasdaq 100, Dow Jones, and S&P 500, fell by over 1%, with tech giants like Tesla and Nvidia seeing declines of more than 5%.
Meanwhile, on Ethereum, the meme token Neiro has emerged as a standout performer, skyrocketing over 100% to reach a high of $0.176—its biggest surge since August 5. Neiro (NEIRO) is named after a rescue dog adopted by the owner of Kabosu, the Shiba Inu who inspired Dogecoin. Despite its name, the token has no direct connection to the dog or its original meme.
The token’s recent rise has been dramatic, with Neiro on Ethereum climbing by up to 538% from its lowest point, pushing its market cap beyond $147 million. The surge has been fueled by social media hype, making it one of the most shared tokens on platforms like X.
One notable promotion involved the NEIROETH team sending over 17 million newly minted tokens to Vitalik Buterin’s wallet, who promptly sold them for 32 ETH. Additionally, the token’s value surged after Binance launched USD margin perpetual contracts. CoinGlass data reveals that open interest for NEIRO hit a record $35 million, mainly from Bybit, indicating potential further increases as Binance fully integrates.
However, the token’s growth is not without risks. Past trends show that tokens often become more volatile after listing on major exchanges, with their initial gains being unsustainable. For instance, Pyth Network saw a significant rise post-Binance listing in February, only to hit historic lows recently. The looming death cross pattern in Bitcoin could also lead to further declines, affecting most altcoins.
Most concerning are allegations of market manipulation. Blockchain analytics platform Bubblemaps reports that around 78% of NEIRO tokens were pre-allocated to insiders, who have since transferred them to over 400 wallets. As of August 28, this group has sold approximately $9 million worth of NEIRO. Some wallets involved in exchange contracts have been expanding their holdings, buying and selling NEIRO to manipulate market prices. Notably, one buyer spent $3 million on 17.5 million NEIRO, becoming the largest individual holder.
This pattern of behavior is reminiscent of early price movements for the Solana-based NEIRO, where internal wallets used minimal SOL to acquire substantial amounts of the meme token, amplifying its price.