decrypt.co
One of the many Neiro tokens has broken into the top 15 meme coins by market capitalization, as it leaped from $15 million to $352 million in the two days following its listing for spot trading on Binance.
Yi Hi, co-founder of the exchange, later explained in a blog post that the other tokens failed a “compliance review and token concentration.”
Neiro is the name of a newly adopted Shiba-Inu of the owner of Kabosu, the pet whose photo-turned-meme inspired Dogecoin. The dog passed away earlier this year. And as soon as the new dog was revealed by its owner, a blockchain civil war broke out with two Solana meme coins fighting for liquidity. As weeks passed, a token on Ethereum established itself as the big dog breaking into the top 25 meme coins after being listed by Binance for futures trading.
Now, a week later, a second Neiro token has been listed on Binance—but this time for spot trading. It’s not either of the Solana tokens, which were the earliest created in Neiro’s honor, but a second Ethereum coin that has been slowly building in the background. It’s been commonly referred to as Neiro CTO—short for community takeover.
The key difference here is that Neiro on ETH was listed as a futures contract, which means the trader has to buy or sell the asset at a specific time, quantity, and price. Whereas Neiro CTO was listed for spot trading. Spot trading is a lot more flexible, allowing the trader to buy and sell as they see fit relative to the token’s current price.
The listing has resulted in Neiro CTO soaring over 2,270% from a market cap below $15 million to over $352 million in just over 48 hours. Many were confused why Binance would choose to list this fairly low market-cap Neiro for spot trading rather than Neiro on ETH which was over $80 million.
“We listed several meme projects with relatively decentralized tokens and low market capitalization.” Yi Hi, co-founder of Binance, said in a blog post explaining why they listed Neiro CTO, “There are more than ten projects screened in the early stage, and many of them failed due to compliance review and token concentration.”
$NEIRO on ETH (@neiro_ethereum) is heavily controlled ⚠️
78% of the supply was sniped at launch and spread out among many wallets.
Insiders already made $4.5M and still own 66% 🧵 ↓ pic.twitter.com/dEwiuE3Gu2
— Bubblemaps (@bubblemaps) July 30, 2024
On-chain analyst company Bubblemaps told Decrypt it believes these referenced tokens include the two Solana tokens and explains why Neiro on ETH was only listed as a futures contract.
Bubblemaps had previously issued a warning against Neiro on ETH, saying 78% of the supply was sniped at launch. This increases the chances that the token could be rug pulled by inside investors. This level of token concentration, Bubblemaps said, likely explains why Neiro on ETH was only listed as a futures contract.
Edited by Stacy Elliott.