MemeCore’s M token suffered a dramatic selloff after losing nearly 75% of its value within hours, reigniting concerns over insider holdings, liquidity, and exchange listing standards.
Key Takeaways
- MemeCore’s M token plunged about 75%, wiping out nearly $3 billion in market value.
- ZachXBT renewed earlier allegations about supply concentration, market manipulation, and questioned why major exchanges listed the token.
- The project has not issued an official explanation for the crash, and no exploit or hack has been confirmed.
- Analysts say the collapse highlights the risks associated with tokens that have limited liquidity and concentrated ownership.
What Happened?
MemeCore’s M token experienced one of the sharpest declines in the crypto market after falling from nearly $3 to around $0.50 within hours on June 25. The sudden decline erased almost $3 billion in market value and pushed the token’s market capitalization below the $1 billion mark.
According to reports from crypto.news and CoinDesk, there was no confirmed exploit, security breach, or official announcement that could explain the sharp decline, leaving traders searching for answers.
How many retail investors lost funds due to the MemeCore teams $M manipulation?
— ZachXBT (@zachxbt) June 25, 2026
You are not welcome in the US go back to your home country.
Only let in the US because one of your parents is a foreign billionaire.
Not a single person would miss you if you disappeared tomorrow… pic.twitter.com/unGk06xRz5
ZachXBT Brings Earlier Concerns Back Into Focus
Following the crash, on chain investigator ZachXBT revisited concerns he had previously raised about MemeCore.
On Telegram, ZachXBT noted that the token’s fully diluted valuation had fallen from roughly $14 billion to about $3.8 billion after the selloff. He said that he, Mlm, and Wazz had previously identified warning signs involving supply concentration and what he described as deceptive user growth practices.
He also questioned why several major exchanges listed the token despite those concerns.
In a public post directed at MemeCore figure Rudy Rong, ZachXBT wrote:
The allegations remain unverified, and MemeCore has not publicly responded to the claims or issued a detailed explanation for the token’s collapse.
Earlier Supply Questions Return
The latest selloff has renewed attention on concerns first raised in April.
At the time, ZachXBT questioned how MemeCore reached a multibillion dollar valuation while a significant portion of the token supply appeared to be concentrated among a small number of wallets.
Previous blockchain data cited by crypto.news indicated that a Binance deposit address held approximately 41.3% of the token supply, while another wallet controlled roughly 21.77%. Those findings fueled debate about insider ownership and whether the token’s valuation accurately reflected genuine market demand.
Earlier reporting also highlighted the gap between MemeCore’s circulating market capitalization and its much larger fully diluted valuation, warning that future token unlocks could place additional pressure on price if demand failed to keep pace.
Exchange Listings Face Fresh Scrutiny
The sharp decline has also placed greater focus on how exchanges evaluate new token listings.
ZachXBT previously questioned why Kraken listed M for spot trading, alleging suspicious wallet activity involving millions of dollars worth of tokens and claiming insiders manipulated the token’s valuation. He also questioned why platforms including Binance, Bybit, and Bitget offered trading for the asset.
Those claims have not been independently verified, and the exchanges have not publicly commented on the allegations referenced in the reports.
Still, the incident has sparked broader discussion across the crypto industry about whether exchanges should conduct deeper reviews of token distribution, market liquidity, and ownership concentration before listing assets for retail investors.
Technical Picture Remains Weak
The market structure also reflects continued weakness.
Trading volume during the selloff remained relatively low compared with the size of the price decline, suggesting limited liquidity may have amplified selling pressure.
Technical indicators also remain bearish. The Relative Strength Index dropped into deeply oversold territory, while the MACD continued to signal strong downside momentum. Although oversold conditions can sometimes produce a short term rebound, analysts say they do not necessarily indicate a lasting recovery after such a significant breakdown.
Until the token can recover key resistance levels and rebuild investor confidence, traders are likely to remain cautious.
CoinLaw’s Takeaway
In my experience, this story is about far more than one token losing value. It highlights why investors should always look beyond market capitalization and flashy valuations. I have found that liquidity, token distribution, and transparency often matter more than headline numbers. Whether or not the allegations prove accurate, the MemeCore collapse is another reminder that projects with concentrated ownership and thin trading liquidity can unravel very quickly when confidence disappears.
