Neiro's Split with Gotbit Did Not Negatively Affect the Price
Crypto world is abuzz about Neiro's split from Gotbit. The company's official release stressed that their split was important to disassociate themselves from Gotbit's problems, which do not directly affect Neiro. Its timing and context have left many wondering whether there's more to this choice.
Key announcement
We ended our market maker partnership with Gotbit. Neiro has no stake in Gotbit or its workers' difficulties. It is the appropriate choice for the Neiro project and community.
@First Neiro on Ethereum 10/11/2024
Gotbit Under Investigation: Market Manipulation Claims
Gotbit, a popular market-maker, has been accused of market manipulation and wash trading. Recently, blockchain investigator ZachXBT revealed that Gotbit pumps token prices to induce FOMO and then cash out at the top, leaving regular investors at a loss. Partnering with market makers notorious for such abuses is risky, since the SEC, DOJ, and FBI are investigating Gotbit and similar businesses.
Despite Neiro's claims that Gotbit's actions won't damage their project, their quick move to return cash to a community-controlled wallet and the CTO's personal funding raise concerns. Is Neiro preparing for financial ramifications from their partnership with Gotbit, or are they trying to remove themselves before things become worse?
New Partnerships: Desperation or Strategy shift?
Neiro has informed its community that they are in negotiations with new, trustworthy market makers and will onboard them within days or hours. The pace of this transformation may reflect desperation, despite its proactive nature. Switching to new partners so quickly may not afford enough time for due diligence, raising questions about these new market makers' vetting. Is Neiro risking its community by rushing this decision?
Gotbit's abrupt shutdown comes with a larger regulatory assault on crypto market makers, as regulators target insider trading and price manipulation.
