Theres a new meme coin in town NEIRO. But experts have already raised significant red flags over it.

According to the blockchain data platform Bubblemaps, significant insider trading activity has been observed with NEIRO on the Ethereum blockchain.

Insider Trading on NEIRO on Ethereum

NEIRO meme coin on Ethereum has been found to be heavily controlled by a select group of insiders.

At the tokens launch, 78% of the supply was quickly acquired by 80 addresses, each obtaining around 1% of the total due to a holding cap. In an update on X, Bubblemaps said that these addresses then meticulously distributed the tokens across 400 different wallets to avoid detection and to minimize the impact of their sales, rarely disposing of more than $3,000 worth of tokens at a time.

This strategic distribution of the token has made it challenging to calculate their realized profits accurately. Despite this, Bubblemaps has estimated that the insiders have sold around 11.7% of their holdings, generating approximately $4.5 million, while they still control 66% of the token supply.

NEIROs Origin and Subsequent Price Surge

NEIRO is based on Kabosu which was the pet dog whose photo birthed the OG meme coin Dogecoin (DOGE). The website states that NEIRO is The sister of the OG DOGE, Kabosu, here to make history on the Ethereum chain!

It was the announcement of Kabosus owners new Shiba Inu pet, Neiro, on X which prompted the launch of several NEIRO tokens on Solana, feuding against each other, to replicate the success of DOGE.

Neiros owner, going by the pseudonym Kabosumama, however, has distanced themself from the meme coins that have subsequently sprung up.

In the meantime, NEIRO on Ethereum quietly managed to capture the attention of the community.

Since its launch less than a week ago, its price on Ethereum surged to $0.20 before settling around $0.16 at the time of writing. According to CoinMarketCap, it is already among the top 20 most valuable meme coins and has recorded a massive trading volume of more than $35 million in the past 24 hours.