The unexpected volatility within the meme coin market occurred due to Ethereum co-founder Vitalik Buterin, who sold his 17 billion Neiro airdrop. He first caused a considerable dip but gave the token a surprising pump later. As the event indicates, the meme coin market can be unpredictable and speculative, with significant movements based on events involving influential persons such as Buterin.
“According to an industry insider, Vitalik Buterin’s moves are pretty influential in the market, and the recent Neiro case is a good representation of the volatility and speculation levels of memecoins.
Vitalik Buterin’s Impact on Memecoin Market
A meme coin trying to piggyback on the fame of Vitalik Buterin got the surprise of its life after the token airdropped him. The obscure token Neiro on ETH (NEIRO), airdropped 4% of its supply to Vitalik Buterin on August 4, making him the largest holder. It is probably trying to gain credibility in the highly speculative meme coin market.
However, Buterin suddenly sold his entire stash of 17.1 billion NEIRO, exchanging it for 44.5 Ether, worth approximately $103,000. The token’s value tumbled about 60% after selling activity by the Ethereum co-founder, as market participants reacted to Buterin’s sale.
“Vitalik Buterin’s quick sale of NEIRO caused a significant drop in the token’s value, reflecting the market’s sensitivity to his actions,” noted a market analyst.
The Surprising Pump
The Neiro token did not stay down for so long in a surprise turn of events. According to DexScreener the NEIRO token pumped more than 200% to reach an all-time high of $0.000038 on August 5. This pump occurred despite Buterin’s initial sell-off, showcasing the volatility of the memecoin market and how unpredictable traders can sometimes be.
After the sale, a message was posted on Neiro, on the Ethereum CTO account, begging Buterin to donate part of the proceeds to a stray dog shelter and thanking him for creating the Ethereum ecosystem. This interaction best explains it: many memecoin projects are often community-driven.
“Hey @VitalikButerin, we see that you sold your $Neiro bag. We humbly ask that you donate part of the proceeds to a stray dog shelter. And thank you for building our playground!” the account posted.
Multiple Versions and Potential Scams
What complicates the situation of the Neiro token is that several different versions exist in circulation. CoinGecko has four variations of the NEIRO token and at least six variations on Uniswap, with many probably scammy Neiro-related accounts on X. This proliferation of versions adds to the confusion and risk associated with investing in such tokens.
Adding to the drama, the dev behind a Solana-based version of Neiro reportedly made off with $2.85 million in an apparent rug pull. According to Cointelegraph, this incident is characteristic of the dangers and potential scams in the memecoin market.
“The biggest Neiro token on Ethereum is a honeypot,” warned independent blockchain sleuth “Wazz” in late July, advising caution to potential investors.
Market Rout for Memecoins
The meme coin market is going into a rout—its total meme token market capitalisation has fallen by about 16% over the past 24 hours to $35.8 billion. Notable losers are Pepe, Dogwifhat, Floki, and Book of Meme, all down between 18% and 20% as of August 5.
“The meme coin market is incredibly volatile, and recent events involving Vitalik Buterin highlight just how quickly sentiment can shift,” commented another market expert.
Conclusion
The case of Vitalik Buterin and Neiro memecoin has proved to be one of the most unpredictable scenarios in the memecoin market. Buterin selling his airdropped NEIRO initiated a dip, only for it to pump back unexpectedly again, proving a high amount of speculation and volatility in memecoins. Investors should take great care and be knowledgeable about this space, which is usually full of risks and uncertainties. Stay on top of your game with updates from Turkishnyradio.
