ZachXBT, a crypto investigator, criticizes the Ethereum-based memecoin project for its collaboration with the market maker, despite being aware of its previous pumps and dumps schemes.
Neiro terminates its partnership with Gotbit subsequent to the emergence of additional allegations of market manipulation. Nevertheless, the resulting controversy has prompted apprehension regarding crypto alliances, with some individuals condemning the Ethereum-based memecoin project.
ZachXBT, a crypto investigator, even joined the criticism chain on Neiro, stating that the company was aware of Gotbit’s prior market manipulation allegations prior to their partnership.
Meme coin initiatives such as Neiro disassociated themselves a few days after the Securities and Exchange Commission (SEC) charged Gotbit and three other market makers with manipulation and wash trading.
A post on October 11th announced that Neiro had separated from Gotbit: “We have terminated our partnership with Gotbit, who were our market-maker collaborators. Neiro is not involved in or relevant to any of the issues involving Gotbit or its employees. Nevertheless, detaching ourselves from the Neiro initiative and community is the appropriate course of action.”
The company also disclosed that they had already withdrew a portion of the money market funds. In the interim, the CTO head will utilise his funds for market making while they await the remaining funds. Assuring users that the project would be more robust than before, the organisation asserted that it would collaborate with emerging market leaders as early as a few hours or days ago.
Nevertheless, ZachXBT, a blockchain investigator, has criticised Neiro for its initial collaboration with Gotbit. He contended that Neiro was cognisant of Gotbit’s damaged reputation in the crypto market manipulation but elected to disregard it.
He also cited a public statement issued by Neiro on August 6th, in which the meme coin initiative acknowledged having heard “shady crap” about Gotbit. ZachXBT also mentioned that on August 7th, a holder cautioned them against engaging with Gotbit, and Neiro advised him to only speak on their platforms.
ZachXBT issued a challenge to the Ethereum-based memecoin project in a separate post, urging them to provide an explanation to their community as to why they chose to collaborate with Gotbit, despite being aware of their previous “pumps and dumps” prior to the allegations from the Federal government.
The investigator had long questioned the credibility of the market maker, even prior to the open investigation into Gotbit’s activities. Following a published report on Gotbit’s provision of services that were highly questionable, ZachXBT advised investors against participating in initiatives with the market maker on September 24, 2023.
Gotbit had stated in the disclosed report that they intended to increase the price by over 10 times in the initial minutes of the price discovery stage in order to generate FOMO and accumulate the maximum amount of purchasing power. They would subsequently sell the maximum number of tokens during the subsequent surge.
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