Neiro Gotbit Partnership Is Now Raising Many Doubts

Key Points:

• Ethereum-based memecoin project Neiro ended its partnership with market maker Gotbit after allegations of market manipulation emerged.
• ZachXBT criticized the Neiro Gotbit partnership, citing the firm’s long-standing negative reputation.

Ethereum-based memecoin project Neiro announced it has officially terminated its partnership with crypto market-making firm Gotbit following allegations of manipulation.

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Neiro Gotbit Partnership Was Terminated Over Allegations of Manipulation

The announcement came shortly after Gotbit was accused of a number of fraudulent activities, including manipulating token prices and engaging in wash trading. ZachXBT, a blockchain investigator who has called out the exchange’s questionable practices, expressed surprise that the Neiro Gotbit partnership was in the first place.

ZachXBT stated that Gotbit had been known for a while as a manipulator, and loads of evidence piled up on their market manipulation. This should have served as some kind of warning from Neiro.

He further wondered why Neiro did not raise a flag at an earlier stage, insinuating that the project’s decision to cut the Neiro Gotbit partnership may be a measure after the fact rather than one taken pre-emptively.

Gotbit Faces Regulatory Heat as Scrutiny Intensifies

Gotbit is a market-making service firm implicated in various high-profile controversies, including plans for price manipulation with the express purpose of artificially pumping up token values, often leaving retail investors at a loss when prices crash.

Over the last few days, regulatory bodies such as the U.S. SEC and the Department of Justice have also been scrutinizing crypto market makers including Gotbit. The arrest for market manipulation of the chief executive officer further pressed companies associated with the firm.

The wider regulatory crackdown axed the Neiro Gotbit partnership. Though Neiro reassured its community that its project was stable, events like transferring funds to a wallet controlled by the community and the CTO injected personal funds may beg some questions about the financial consequences of their association with Gotbit.

This will probably also put other crypto projects linked with Gotbit, including Hamster Kombat, Baby Doge, SunPump, and Scallop, under more intense scrutiny as more investigations continue into Gotbit’s activities.