The recent announcement of Neiro’s decision to sever its partnership with Gotbit follows serious accusations against the exchange, including manipulation of token prices and engagement in wash trading. Blockchain investigator ZachXBT, known for exposing questionable practices in the crypto industry, expressed surprise that the collaboration between Neiro and Gotbit had even taken place, given Gotbit's notorious reputation.
ZachXBT highlighted that evidence of Gotbit's market manipulation had been accumulating for some time, suggesting that Neiro should have recognized these red flags earlier. He questioned why the project didn’t take action sooner, implying that the decision to end the partnership may have been a reactive measure rather than a proactive one.
Gotbit, a market-making service firm, has faced increasing scrutiny due to its involvement in high-profile controversies. Allegations have emerged regarding plans for price manipulation designed to artificially inflate token values, which often leave retail investors at a disadvantage when prices eventually crash.
In recent days, regulatory bodies, including the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), have intensified their investigations into crypto market makers like Gotbit. The arrest of Gotbit’s CEO for market manipulation has further heightened concerns about companies associated with the firm.
The fallout from this regulatory crackdown prompted Neiro to terminate its partnership with Gotbit. Although Neiro reassured its community about the stability of its project, actions such as transferring funds to a community-controlled wallet and the CTO injecting personal funds raise questions about the financial implications of their previous association with Gotbit.
As the regulatory landscape continues to evolve, the crypto community watches closely for the repercussions of these developments. Neiro’s decision to cut ties with Gotbit reflects an increasing awareness of the risks associated with partnerships in the volatile crypto market, underscoring the importance of due diligence in protecting both projects and investors.
October 2024, Cryptoniteuae