MemeCore is facing growing scrutiny after onchain investigator ZachXBT publicly questioned its $6 billion valuation and token distribution.
Key Takeaways
- ZachXBT challenged MemeCore to justify its $6B market cap and insider holdings.
- Concerns over token concentration suggest insiders may control over 90% of supply.
- Market data remains inconsistent, with valuations ranging from $4.3B to $6B.
- Recent RAVE token collapse has intensified scrutiny across similar projects.
What Happened?
ZachXBT publicly called on MemeCore to provide clear data supporting its valuation and token supply structure. The comments come as the M token surged in price, placing it among the top 20 cryptocurrencies despite limited transparency around its fundamentals.
Rising Questions Around MemeCore’s Valuation
The controversy began when ZachXBT directly challenged MemeCore’s claims, stating, “Please provide a single data point to support your $6B mkt cap at a top 20 token and why insiders hold >90% of supply.”
Officially recognized on @ZachXBT ! We’re just getting started.
— ZachXBT (@zachxbt) April 20, 2026
Please provide a single data point to support your $6B mkt cap at a top 20 token and why insiders hold >90% of supply. pic.twitter.com/rsFD3oBgfM
MemeCore markets itself as a layer 1 blockchain focused on what it describes as the Meme 2.0 economy. However, critics argue that the project’s rapid rise lacks sufficient backing data, especially when compared to its relatively low ecosystem activity.
One of the most notable discrepancies highlighted is the gap between valuation and usage. According to ZachXBT, the token has reached a market capitalization near $6 billion while recording only about $66 million in total app volume. This gap has raised concerns about whether the valuation reflects genuine demand or speculative momentum.
Token Supply Concentration Raises Red Flags
Blockchain analytics from Bubblemaps revealed that a significant portion of the M token supply is concentrated in a small number of wallets. One address alone reportedly holds around 50 million tokens, valued at approximately $178 million.
Another key observation is that a Binance linked deposit address appears as one of the largest visible holders. While this may indicate exchange custody or liquidity arrangements, it has still added to concerns about centralized control.
A Bubblemaps analyst suggested that these holdings could represent team allocations rather than coordinated trading. Some of these tokens may not yet be in active circulation, which could limit their immediate impact on market liquidity. Still, the perception of concentrated ownership remains a major concern for investors.
Exchange Activity Comes Under Scrutiny
ZachXBT expanded his investigation by naming major exchanges such as Kraken, Binance, and Bitget as key venues where suspicious trading activity may have taken place.
He suggested that onchain transaction flows indicate these platforms may have received tokens through listing deals or liquidity arrangements. While no formal wrongdoing has been confirmed, the lack of response from these exchanges has added to the uncertainty.
ZachXBT also called for stronger action, urging exchanges to freeze accounts linked to potential manipulation and return funds to affected users.
Broader Market Context After RAVE Collapse
The scrutiny surrounding MemeCore follows closely behind the dramatic collapse of the RAVE token. The asset surged from around $0.25 to nearly $28 before crashing more than 90% within days.
ZachXBT described RAVE as one of the most blatant examples of manipulation, pointing to concentrated holdings and unusual exchange flows. RaveDAO has denied any involvement, while exchanges have stated they are reviewing the situation.
He also flagged several other tokens, including SIREN, MYX, COAI, PIPPIN, and RIVER, as showing similar patterns of questionable price action.
What Remains Unclear?
Despite the allegations, there is still no definitive onchain proof confirming that insiders control more than 90% of MemeCore’s supply. The project has not publicly shared detailed data addressing these concerns.
This lack of transparency leaves investors relying on partial data and third party analysis, which can lead to uncertainty in fast moving markets driven by hype and speculation.
CoinLaw’s Takeaway
In my experience, this situation highlights a recurring issue in crypto markets where valuation can quickly outpace real usage. I find the gap between MemeCore’s $6B market cap and its relatively small app volume hard to ignore.
Even if there is no confirmed manipulation, unclear token distribution alone is enough to raise serious risks. I believe investors should pay close attention to supply concentration and transparency before trusting high valuations.
