Why is $31M Neiro Project on Ethereum Considered as a 'Honeypot?

July 29, 2024 04:58 PM AEST | By Team Kalkine Media

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Why is $31M Neiro Project on Ethereum Considered as a 'Honeypot? — Image source: shutterstock

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The Neiro token has recently come under intense scrutiny due to a series of concerning signs that suggest potential illicit activity. Although our preliminary investigation remains inconclusive, the emergence of several red flags has raised alarms about this crypto’s token legitimacy. Notably, we have been unable to obtain any contact information for the developers behind Neiro, further complicating the investigation.

Red Flags and Security Concerns

According to Wazz, known for his previous work uncovering significant crypto breaches such as the $870,000 hacking of Mark Cuban’s hot wallets, the Neiro token has been identified as a potential honeypot scam. The token’s Ethereum blockchain address, "0x3ad4f189f08cdc60496eeBb3bd70B90dF28B7455," has been flagged due to suspicious activity. Blockchain analytics site Quick Intel reports that Neiro currently has a market capitalization of around $31 million, yet it has not undergone a "renouncement" process.

Lack of Renouncement and Liquidity Concerns

In crypto terminology, "renouncement" refers to the relinquishment of control over the token’s functions, which can prevent manipulation or obstruct user transactions. The Neiro project’s failure to renounce ownership means that its developers retain control over crucial functions that could potentially be used to manipulate the token. Furthermore, the token’s liquidity pool is not locked, raising concerns that funds could be withdrawn abruptly, posing significant risks to investors.

Potential Risks and Investor Warning

Given these issues, investors are advised to exercise extreme caution when considering involvement with the Neiro token. The presence of unresolved red flags and the lack of transparency around the token’s development and control mechanisms highlight the need for thorough due diligence before making any investment decisions.

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