Memecoin project Neiro, which has been criticized for its collaboration with market maker Gotbit, announced that it has ended its partnership with the company.
The announcement comes as Neiro faces scrutiny from the crypto community, including top crypto researcher ZachXBT.
“We have stopped our relationship with our market maker partners Gotbit. None of the issues concerning Gotbit or its employees concern Neiro in any capacity. However, it is the right decision to distance ourselves from the Neiro project and community,” Neiro said in a statement.
The project stated that it has withdrawn some market maker funds to its community multisig wallet and that its CTO will temporarily use personal funds to maintain market maker operations. Neiro added that it is actively seeking new industry-leading market makers to ensure a smooth transition that could happen within a few hours or days.
ZachXBT, a leading crypto detective known for his in-depth investigations, responded to Neiro’s announcement by questioning the team’s initial decision to work with Gotbit: “Perhaps your team should explain to the community why you chose Gotbit in the first place, which has always had a bad reputation with a lot of evidence showing pumps and dumps before being accused of fraud and market manipulation by the US government this week.”
The CTO of Neiro, who is leading the project, responded to ZachXBT’s concerns in a response shared on social media. He explained that the decision to partner with Gotbit was based on time constraints and financial limitations at the time: “At the time Justin Sun tweeted that we were getting listed on HTX, we didn’t have a market maker because Neiro wasn’t listed anywhere and HTX required a market maker. We only had a few hours to find one. Gotbit was the only market maker that we really had a warm connection with because we had been invited to one of their Spaces before.”
He also noted that Gotbit’s services were affordable and fit their limited budget: “As a CTO funded by community donations, we had very little funds to spend on MCC. Gotbit offered a service contract, which was by far the most affordable option.”
The CTO admitted that although he was aware of Gotbit’s controversial reputation, he had no previous direct experience with the firm and decided to move on due to time and budget constraints.
*This is not investment advice.
