MemeCore Dives 75% Following ZachXBT’s Resurgence of Market Manipulation Allegations
On June 25, MemeCore faced an astonishing decline of over 74% in just 24 hours, dropping to around $0.7169, according to pricing data from crypto.news.
Summary
- The 75% drop in MemeCore wiped out billions in market value, pushing the token beneath crucial market-cap thresholds.
- ZachXBT’s prior warnings gained traction as traders expressed concerns over supply concentration, exchange listings, and inadequate liquidity.
- The M chart continues to exhibit bearish trends, with the RSI showing oversold conditions and MACD indicating ongoing selling pressure.
During this time frame, the token oscillated between $0.5055 and $2.92, with a 24-hour trading volume of about $22.3 million.
The crash slashed MemeCore’s market cap to approximately $940.9 million, while its fully diluted valuation decreased to around $3.85 billion. Over the last month, the token has plummeted by more than 76%, and it fell by over 75% within the past week.
The price of M tumbled from nearly $3 to about $0.50 in just hours, erasing near $3 billion in market capitalization. No confirmed reports of exploitation, hacks, or any formal announcements have surfaced to clarify this sudden downturn.
This collapse has caused MemeCore to drop out of the upper tier of large-cap tokens after having traded at significantly higher valuation levels. Previously, the token reached an all-time high of $4.82 on April 24, prior to the recent decline.
ZachXBT Expresses Concerns Post-Crisis
On Telegram, on-chain analyst ZachXBT remarked that MemeCore’s fully diluted valuation plunged from about $14 billion to $3.8 billion following the unexpected 75% collapse on centralized exchanges. He stated that he, along with Mlm and Wazz, had raised concerns earlier about supply concentration and potentially misleading user-growth claims.
Moreover, ZachXBT highlighted that Arkham data indicated no transfers exceeding $50,000 on BSC in over two weeks. He stressed that Dexscreener data showed total on-chain liquidity on BSC was below $100,000.
He questioned the rationale behind Binance and Bybit listing M perpetuals, as well as Kraken and Bitget offering M spot. He argued that such “highly manipulated tokens” harm the industry and erode value for retail investors.
ZachXBT also responded to MemeCore representative Rudy Rong on X, inquiring, “How many retail investors lost funds due to the MemeCore team’s $M manipulation?” As of this writing, MemeCore has not released a definitive public statement regarding the crash.
Prior Warnings About Supply
In April, crypto.news highlight that ZachXBT had already pressed MemeCore for clarification on how M achieved a multibillion-dollar valuation while a noticeable portion of its supply appeared concentrated among a limited number of holders. He requested data to substantiate the project’s market cap and claims regarding insider holdings.
The report revealed blockchain data showing that a Binance deposit address was the largest holder of MemeCore, controlling roughly 41.3% of the supply. Another wallet possessed 50 million M tokens, worth approximately $178 million, accounting for 21.77% of the total supply.
The same article assessed MemeCore’s dilution risk by comparing it to Shiba Inu, asserting that MemeCore’s fully diluted valuation greatly exceeded its circulating market cap, thus posing a potential risk for future supply.
It pointed out that only a fraction of MemeCore’s supply was active in the market, implying that upcoming unlocks and pressure from the fully diluted valuation could significantly alter price movements if demand didn’t align.
The recent crash has amplified these supply concerns for traders. A token can decline rapidly when liquidity is low, supply is heavily concentrated, and selling commences on centralized exchanges.
Technical Indicators Remain Weak
The daily chart for M/USDT indicates a significant breakdown. The price fell from around $2.84 to $0.692, reflecting a decrease of about 75.63%. The intraday low near $0.524 suggests that buyers could not defend the previous range.
This movement shattered the trading range of $2.80 to $3.20, shifting the short-term trend from stable trading to a definitive bearish turn. Volume surged to about 1.49 million, indicating that the selloff was accompanied by considerable trading activity.
The RSI has dropped to 18.18, well below its moving average of approximately 45.71, placing M squarely in oversold territory. Although an oversold RSI may support a brief corrective bounce, it does not confirm any recovery after such a dramatic decline.
The MACD indicator continues to display bearish signals, with the MACD line at approximately -0.2260, below the signal line at about -0.0769. The negative histogram at around -0.1491 indicates that sellers still possess momentum in this market.
M would need to recover lost levels and sustain them for the chart to present a more optimistic outlook. A return above the breached $2.80 range is much more significant than a fleeting relief bounce. Until then, the technical setup remains unfavorable.
Exchange Scrutiny Grows
The recent crash has shifted attention from price to exchange regulation. In April, ZachXBT questioned Kraken’s choice to list M for spot trading, highlighting $7.9 million in suspicious withdrawals aimed at 18 newly created addresses and suspected team-related transfers to Kraken deposit addresses.
The April warning alleged that insiders inflated M’s market cap to $6 billion, leading to a fully diluted valuation of $18 billion. These claims remain unverified by all involved parties.
The critical question now is whether the exchanges that listed M adequately assessed elements like supply concentration, liquidity depth, and market dynamics before introducing M markets. Perpetual futures can amplify volatility when the spot market is weak or when real liquidity levels are below the reported market-cap figures.
This incident illustrates how rapidly a high-FDV token can drop when investor confidence falters. Although MemeCore is still being traded, the crash has raised significant concerns regarding liquidity, supply management, and whether exchanges effectively safeguarded users prior to allowing M to be listed.
Disclosure: This article is not meant as investment advice. The information and materials presented on this page are solely for educational purposes.